Filing for bankruptcy is a complicated, emotional process. It takes more work and time than most people realize — but for the right situation, it can be the solution that finally ends the spiral.
Don't get discouraged by growing past-due balances, credit card debt, or overdue medical bills. If you take action early, you can get help before things get worse.
You may qualify for protection under the U.S. Bankruptcy Code — and filing could help you regain control of your financial future. For some, Chapter 7 offers the chance to discharge unsecured debts and start over. For others, Chapter 13 allows you to repay secured debts like a mortgage over time.
Consult with a licensed attorney or educate yourself on your options. Filing for bankruptcy may help you out of a difficult financial bind.
Most people who file have far more debt than income — and don't see that changing soon. The statistics might surprise you.
Bankruptcy cases filed in 2019 in the United States.
752,160 of those cases were filed by individuals, not businesses.
Median income of Chapter 7 filers. Not wealthy.
Median income of Chapter 13 filers.
What's surprising is that individuals — not businesses — file most often. They owe money for a mortgage, credit card debt, auto loan, or student loan (sometimes all four) and don't have the income to cover it.
Bankruptcy can also be a financial planning tool when you do have enough money to repay debts but need to restructure the terms — often to repay mortgage arrears or taxes in a structured plan.
Filing for bankruptcy is a legal process that reduces, restructures, or eliminates debts. Whether you get that protection is up to the bankruptcy court.
List your debts, assets, income, and expenses. This gives you — and eventually the court — a full picture of your situation. The better organized your records, the smoother the process.
You cannot file for bankruptcy until you've completed a required credit counseling course. The counselor must be from an approved provider listed on the U.S. Courts website. Most agencies offer this online or by phone. You'll receive a certificate of completion that must be included in your filing. Skip this step and your filing will be rejected.
The petition includes schedules of your assets and liabilities, current income and expenses, a statement of financial affairs, and other required documents. Judges and court employees cannot give you advice. If you need legal advice about your specific situation, consult a licensed attorney.
We can help by typing the forms based on the information you provide. We do not give legal advice or select forms for you.
When your petition is accepted, the court assigns a bankruptcy trustee. The trustee schedules a meeting with your creditors — called the 341 meeting. You must attend. Creditors don't have to, and usually don't. This is their opportunity to ask you questions about your case.
Bankruptcy costs typically include court filing fees and — if you hire help — attorney or document preparation fees.
Court filing fees are set by the court and change periodically. Always check with the bankruptcy court for current amounts. With the court's permission, filing fees may be paid in installments.
Our document preparation fee is separate and quoted up-front as a flat fee. Call us for a quote: (754) 777-0807.
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