How Bankruptcy Works in Your State

LegalConsumer.com's Guide to 2022 Post-Pandemic Bankruptcy Planning

Most Americans are just one catastrophic event away from financial ruin. Sometimes a life event (i.e. "shit") happens to us.... And it can overwhelm us with debt. But, fortunately, that doesn't mean your life is ruined forever. In fact, that's exactly why bankruptcy law was created! — for the “honest but unfortunate debtor.”

How Chapter 7 Bankruptcy Works

How Chapter 7 bankruptcy can help you cancel your debts, protect your exempt property, and stop bill collectors.

How Chapter 13 Bankruptcy Works

You can use Chapter 13 bankruptcy to get out from under the burden of your debts, protect important property, and stop bill collectors.

Do I have Options Other Than Filing for Bankruptcy?

If your creditors will negotiate, if bankruptcy can't cancel most of your debts, or if you're truly broke, bankruptcy may not be the best solution for you. Here's how to decide.

Glossary of Important Bankruptcy Terms

From Adversary proceeding to Wage garnishment

Bankruptcy Basics Videos

The Federal Court system offers a series of videos (produced in 2010) on how the bankruptcy process works.

How to File for Chapter 7 or Chapter 13 Bankruptcy, Step-By-Step

Steps for filing bankruptcy in your state, from learning whether you qualify, to completing and filing bankruptcy forms, to discharging your debts and getting on with your life.

How Much Does It Cost to File for Bankruptcy?

Tips for keeping bankruptcy costs down, from court filing fees to mandatory counseling costs to getting legal help.

Where to File for Bankruptcy

Most people file for bankruptcy in the federal district court closest to where they've lived for the past six months.

Working With the Bankruptcy Trustee

Filing for Chapter 7 bankruptcy means that you'll be dealing with a "bankruptcy trustee" who will be assigned to handle your case. The trustee's job is to gather all non-exempt property you own into the "bankruptcy estate" to determine what (if anything) can be sold and the proceeds distributed to your unsecured creditors. In most cases, there's nothing left — "no-asset" cases make up more than 90% of consumer chapter 7 cases — but the trustee will be looking.

Getting help from your local court to file bankruptcy without an attorney

You may be surprised to learn that every federal bankruptcy court has a special section just for people filing bankruptcy without an attorney. Learn how to use this information if you are thinking about filing for bankruptcy.

Do I need a lawyer to file for bankruptcy?

The law does not require to have a lawyer, and if your case is simple and you have few assets, you can successfully file a Chapter 7 bankruptcy yourself. Chapter 13? Not so much. And if you have property to lose, or you're not great with details, getting a lawyers help can be a good idea, no matter what kind of bankruptcy you're filing. Also a lawyer may find ways to help that you haven't' thought of

Where do I file for bankruptcy?

Bankruptcy is federal law and you file in the local Federal District Bankruptcy Court. Find out yours.

Do I have to get credit counseling before I file for bankruptcy?

Yes. You must complete a credit counseling course before you file your bankruptcy petition. Fortunately, it's easy and can be done online. And your case cannot be completed (i.e. you can't get your "discharge order" from the judge until you take a "Debtor Education" course.

What is a 341 hearing (creditors meeting)?

Everyone who files for bankruptcy must attend a 341 hearing, which is also called a "creditors meeting." The meeting is conducted by the bankruptcy trustee assigned to your case. During the Coronavirus, it. can be done by phone.

US Bankruptcy Courts - By State

Bankruptcy Court FAQ

What you need to know about how to get information you need bankruptcy court and what you're likely to encounter on court websites

What is CM/ECF?

Can I file electronically? Am I Required To?

Can you file online? In some courts, yes, most no. But there are other options that can allow you to file electronically if your case is simple.

What does "pro se" mean?

Will the court staff explain the filing procedure to me?

What is a 341 Hearing?

Glossary of Important Terms You're Likely to find in Court Websites

What does "pro bono" mean

Free Bankruptcy Forms - Every US District

All forms for bankruptcy can be dowloaded for free. Here's what you'll need and where to find them.

Required Forms & Fees for your Bankruptcy Court

Where to find the local forms required by your bankruptcy court.

Basic Forms You Will Need In Any Court

Here are links to the basic forms you need to complete to file your case.

Local Forms Required by Your Court

In addition to federal forms. Some courts have their own local forms that you must use. Here's where to find them.

Free PDF Downloadable Bankruptcy Forms

An edited list of the main federal forms for use in all courts.

Getting Help With Forms & Filing

Free PDF Downloadable Bankruptcy Forms

Basic Forms You Will Need in Any Court

Local Forms Required by the New York Southern District Bankruptcy Court

Getting help with forms and filing

Bankruptcy Forms FAQ

Your questions about bankruptcy forms

Can I get free bankruptcy forms?

The US government makes PDF bankruptcy forms available for free. We'll tell you which ones you need and links to download them.

Is My Income Low Enough To Qualify for Chapter 7?
It Depends on Your State and County

A mathematical formula—called the means test—determines whether you qualify for Chapter 7 Bankruptcy in your state. The means test first looks to see if your average income for the past six months is below the median income in your state. And if it is, then it looks at whether would have enough "disposable income" to fund a five-year Chapter 13 debt repayment plan—after allowing for monthly expenses for food, housing, clothing, transportation and medical care, based in part on county-by-county expense standards for your county that the IRS uses in their nationwide tax-collections efforts.

Means Test Calculator For Your County

The Means Test Calculator is an automated version of the official three-part test form. Just choose your zip code, and the calculator applies the relevant state median income and county living standards, based on the number of persons in your household, your marital status and what county you live in.

Median Income Update April 1, 2022 - Bankruptcy Means Test

The means test initially looks to see if your household income is above or below median for a household your size in your state.

Means Test FAQ

The bankruptcy means test was added to US bankruptcy law in 2005 as part of the credt-card-industry sponsored bankruptcy law to weed out so-called "bankruptcy-abusers" -- hence the language about a "presumption of abuse" (just to make you feel extra ashamed for exercising your right to bankruptcy!).

Line by Line Help for the Bankruptcy Means Test

The official position of the U.S. Trustee's office of how to interpret issues arising in each line of the means test.

Bankruptcy Means Test Income and Expense Standards For Your County and State - For Cases Filed On or After April 1, 2022

What Debt Can Be Wiped Out In Bankruptcy?

Bankruptcy can eliminate some kinds of debts, like credit card debt and medical debt, but not others, like child support and (in most cases) student loans. And liens associated with "purchase money secured debts", where you have pledged collateral for a loan, also are not affected by a bankruptcy, so you can still lose the collateral to the lien-holder.

What Debts Will I Still Have To Pay After My Bankruptcy?

Some kinds of debts pass unscathed through bankruptcy, including child support, debts incurred through fraud or other bad acts, most student loan debt, more.

How Will Bankruptcy Affect My Child Support Obligations?

By law, child support obligations generally cannot be avoided in a bankruptcy. They pass pretty much intact.

Can I Get My Student Loans Cancelled or Reduced In Bankruptcy?

Yes, but it is much more difficult than discharging other types of unsecured debt like credit cards. You have to prove “undue hardship.” But you might get lucky, if you get the right bankruptcy judge. Be sure to consider non-bankruptcy options.

Can I Get My Tax Debts Wiped Out In Bankruptcy?

If you filed tax returns but didn't pay, and the taxes are more than three years old, you may be in luck.

How Will Bankruptcy Affect Someone Who Cosigned One Of My Debts?

Co-signers will still owe the full amount of the debt, even if you you get your personal liability discharged in Chapter 7 bankruptcy.

Secured debt vs. unsecured debt: What's the difference?

Bankruptcy helps you get rid of unsecured debt. It does not eliminate secured debts, where you have pledged collateral for a loan, such as a car loan or a mortgage. When you file bankruptcy you must declare what you intend to do about your secured debts.

Medical Debt: What Bankruptcy Can Do About it

Medical debts are the most common of all reasons people choose the "fresh start" option that bankruptcy gives them. Rather than be saddled with a lifetime of debt, bankruptcy can eliminate that.

What is a Reaffirmation Agreement?

A "reaffirmation agreement" says that your personal liability for a debt goes unaffected by your bankruptcy. But because that's what bankruptcy is for, they should only be signed on rare occasions.

Bankruptcy Exemption Laws - 50 State - Free

A detailed listing of state and federal exemption laws, with statutory citations.

Exemption Inflation Adjustments - 2022 - State by State

The Federal Government adjusts Federal exemption amounts every three years. Does your state adjust exemption amounts?

50-State Exemption Updates

If there's changes in your state’s exemptions, here's where you'll find out about them.

Can I Use the Federal Exemptions in My State?

Federal bankruptcy law has its own list of exemptions 11 U.S.C. § 522, but some states require you to use only the state law exemptions instead, while other states offer a choice of the state or federal exemptions. Find out what your state does.

Bankruptcy Exemptions FAQ

Your questions about bankruptcy exemptions, answered.

What Happens to My Property If I File For Chapter 7 Bankruptcy In My State?

It's important to have a good understanding of what will happen to your property if you file for Chapter 7 bankruptcy.

Can I Give Property Away To Friends Or Relatives To Avoid Losing It In Bankruptcy?

The short answer is “no.” Such transfers in the years before bankruptcy can be undone by the trustee. And if the court thinks you’re tying to hide assets they can deny your discharge.

Can I Keep Property That I've I Pledged as Collateral For a Debt?

When you file, you'll be asked by the court to decide what you want to do about property you've pledged as collateral, and then you have 45 days to act on it. Your options include surrendering the property, "redeeming" the property by essentially buying it outright at it's current (reduced) market value, or "reaffirming" the debt via a contractual agreement to retain your personal liability and keep making payments, or in some cases, "ride through" - that is, keep making payments on the secured debt even though your personal liability has been wiped out.

Can I Keep My Car or Truck If I File For Chapter 7 Bankruptcy in My State?

The answer is, it depends.. on a lot of things: Do you lease or own? If you own the car and are making payments on it, how much of the equity in the car is protected by exemptions allowed in your state? Most people who file for bankruptcy can end up keeping their car, or at least some kind of vehicle that can get them to work and back, but the answer depend on your particular circumstances.

What Will Happen to My House If I File For Bankruptcy in My State?

Whether you can keep your house depends on several things, your mortgage, your state's homestead exemption, and foreclosure rules in your state.

Can Bankruptcy Keep Me From Being Evicted?
No, But Bankruptcy Can Get Rid of Back Rent Debt Accumulated During the Pandemic

Can bankruptcy help stop an eviction? Well, it can delay it, for an extra month or two, in some cases, in some states, if you file early enough in the eviction process. Bankruptcy can, however be a great solution to the problem of "back rent debt" accumulated during the pandemic.

Bankruptcy Lawyers Near Me

How to find a bankruptcy lawyer serving

Connect With an Attorney Serving Your City

LegalConsumer has helped thousands of people like you connect with bankruptcy attorneys who can help them.

How Do I Find a Bankruptcy Lawyer Near Me?

Ten Ways a Bankruptcy Lawyer Can Help You

Here are ten ways that a bankruptcy lawyer can help guide you through the bankruptcy process to make sure you take maximum advantage of what the law offers debtors.

Directories of Bankruptcy Attorneys

Should You Use a Bankruptcy Petition Preparer (BPP)?

If you need clerical help -- not legal help -- a bankruptcy petition preparer can produce your bankruptcy court forms for a reasonable fee.

What is UpSolve, And How Does It Work?

What We're Reading About Debt & Bankruptcy

What We're Reading about Bankruptcy, Debt and Credit. Timely, useful articles, from reliable sources.

Daily News Sources on Bankruptcy

Where to read up on news about about debt, credit, and bankruptcy. These sources report frequently on issues of debt, credit, consumer finance, and student loans.

Credit Card news & Info

Bankruptcy & Economic Statistics

Economic Statistics that relate to bankruptcy, such as savings rates, default rates, and outstanding consumer debt, secured and unsecured, like credit card debt, student loan debt, and auto loans.

Other Free Audio/Video About the Debt & Credit Industry

Good videos and audio information about bankruptcy, for those who listen better than they read...

Consumer News From Local News Affiliates

Many local news stations have consumer reporters who keep up to date on the latest benefits and other laws that affect consumers.

Tweets by @meanstest

What we're Tweeting, in our twitter accounts @meanstest (for bankruptcy) and @lawbyzip

LegalConsumer Bankruptcy Blog

The latest from our blog on bankruptcy news and legislation that affects consumers.