I’m considering filing for bankruptcy. What do I need to know?

Lexi, Chatbot

I understand you're seeking assistance with bankruptcy. Have you already filed for bankruptcy or are you considering it?

Lexi, Chatbot

Are you looking for advice on Chapter 7 bankruptcy, Chapter 13 bankruptcy, or another type of bankruptcy?

Lexi, Chatbot

Is there anything else the bankruptcy lawyer should know before I connect you? Rest assured they'll be able to help with your decision.

Alex, Esq.

Hello, my name is Alex and I'll be the attorney assisting you today. I have over 15 years of experience with bankruptcy law and I'd be happy to answer your questions. I'm sorry to hear about any financial problems you might be going through; I know that can be a very stressful situation.

Before we continue, can you please provide a little more information?

1. Is there a particular reason you are looking into filing bankruptcy? Is there a lawsuit, garnishment, or foreclosure issue?
2. In general, what type of debt do you have?

Alex, Esq.

Since I haven't received a response from you, here is some general information about personal bankruptcy.

Alex, Esq.

Bankruptcy is a legal process designed to:

• Protect someone from their creditors,
• Eliminate most debts, and
• Protect certain property.

There are two main types of personal bankruptcy: Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

• Most common and less expensive
• Faster process — usually completed within 5 months of filing
• Discharges most unsecured debts: credit cards, personal loans, medical bills
• Does NOT eliminate most taxes, student loans, or child support/alimony
• To qualify, you must show the court that your basic living expenses exceed your take-home income — i.e., you don’t have money left over at the end of the month.
• Chapter 7 is a liquidation bankruptcy:
  • The court may sell some non-exempt assets to pay creditors
  • Most people do not lose property due to exemptions protecting common assets
  • You can work with a bankruptcy attorney beforehand to assess if any of your assets would be at risk, and decide whether to proceed.

Chapter 13 Bankruptcy

• Still protects you from creditors
• Requires you to repay some debts through a court-approved plan
• Plans typically last 3 to 5 years
• Used by people who:
  • Earn too much for Chapter 7
  • Are trying to stop foreclosure and save a home
• There are other reasons someone might file Chapter 13, but these are the most common.