Will bankruptcy wipe out all my debt?

No. Common non-dischargeable debts include most student loans, recent tax debt, child support, alimony, and debts from fraud. Most other unsecured debt is generally dischargeable.

Do I need a lawyer to file bankruptcy?

You can file pro se, but the paperwork and deadline requirements are strict, and mistakes can get a case dismissed or bar a discharge. Most people use a bankruptcy attorney, often at a flat fee for a straightforward Chapter 7.

Will I lose my house or car?

Not necessarily. Both Chapter 7 exemptions and Chapter 13 plans are often structured specifically to let filers keep a home and vehicle, especially if payments are current or brought current through the plan.

How long does bankruptcy stay on my credit report?

Up to 10 years for Chapter 7, up to 7 years for Chapter 13, though the negative impact generally fades well before it drops off entirely.

Can I file bankruptcy more than once?

Yes, but there are waiting periods between discharges, which vary depending on the chapters involved, before you can file again and get a new discharge.

What's the difference between Chapter 7 and Chapter 13?

Chapter 7 typically discharges debt within months in exchange for potentially selling non-exempt property. Chapter 13 stretches repayment over three to five years and is often used to catch up on a mortgage or when income is too high for Chapter 7.

Bankruptcy

Legal information last reviewed: July 3, 2026

Bankruptcy is a federal court process that either wipes out (discharges) qualifying debts or reorganizes them into a manageable repayment plan, giving people a legal fresh start when debt has become unmanageable. Chapter 7 and Chapter 13 are the two most common types for individuals.

Chapter 7 (liquidation)

Chapter 7 discharges most unsecured debt — credit cards, medical bills, personal loans — typically within a few months, in exchange for potentially selling non-exempt assets to pay creditors. Most filers' property is fully covered by state or federal exemptions, so nothing is actually sold.

Chapter 13 (reorganization)

For those who don't qualify for Chapter 7, or want to keep property that isn't exempt, like a house in foreclosure, Chapter 13 sets up a three-to-five-year repayment plan based on income, after which remaining qualifying debt is discharged.

The means test

Chapter 7 eligibility depends on comparing your income to your state's median income for your household size. Above the median, a further calculation of disposable income determines whether you must file Chapter 13 instead.

What bankruptcy discharges — and what it doesn't

Most credit card debt, medical bills, and personal loans are dischargeable. Most student loans, recent tax debt, child support, alimony, and most criminal fines generally are not.

The automatic stay

Filing immediately triggers a stay that stops most collection calls, lawsuits, wage garnishments, and — temporarily — foreclosures or repossessions while the case is pending.

When to hire a lawyer

Bankruptcy has real long-term consequences and unforgiving procedural rules, so use a bankruptcy attorney for anything beyond the simplest case. Most offer a free consultation to assess which chapter fits and a flat fee for straightforward Chapter 7 filings.

Frequently asked questions

Will bankruptcy wipe out all my debt?: No. Common non-dischargeable debts include most student loans, recent tax debt, child support, alimony, and debts from fraud. Most other unsecured debt is generally dischargeable.
Do I need a lawyer to file bankruptcy?: You can file pro se, but the paperwork and deadline requirements are strict, and mistakes can get a case dismissed or bar a discharge. Most people use a bankruptcy attorney, often at a flat fee for a straightforward Chapter 7.
Will I lose my house or car?: Not necessarily. Both Chapter 7 exemptions and Chapter 13 plans are often structured specifically to let filers keep a home and vehicle, especially if payments are current or brought current through the plan.
How long does bankruptcy stay on my credit report?: Up to 10 years for Chapter 7, up to 7 years for Chapter 13, though the negative impact generally fades well before it drops off entirely.
Can I file bankruptcy more than once?: Yes, but there are waiting periods between discharges, which vary depending on the chapters involved, before you can file again and get a new discharge.
What's the difference between Chapter 7 and Chapter 13?: Chapter 7 typically discharges debt within months in exchange for potentially selling non-exempt property. Chapter 13 stretches repayment over three to five years and is often used to catch up on a mortgage or when income is too high for Chapter 7.

Bankruptcy laws by state

The rules covered here are general — specifics like deadlines, dollar limits, and required forms vary by state.

Find your state

Related practice areas

Small Claims

Suing without a lawyer in small claims court — limits, filing, and collecting.

This page is general information, not legal advice, and isn't a substitute for talking to a licensed attorney about your specific situation. Read our full disclaimer.