Question 1

Will I lose my house in bankruptcy?

Accepted Answer

Not necessarily. It depends on your equity, your state’s exemptions and whether you’re current on payments. Chapter 13 can help you catch up and keep it.

Question 2

Can I file without a lawyer?

Accepted Answer

You can, but mistakes can cost you property or your case. Many people use a lawyer, especially for Chapter 13.

Question 3

How much does it cost to file for bankruptcy?

Accepted Answer

There are federal court filing fees (a few hundred dollars), plus lawyer fees if you hire one. Chapter 7 fees can sometimes be paid in installments or waived for low incomes.

Question 4

What is the means test?

Accepted Answer

A calculation that compares your income with your state’s median to see whether you qualify for Chapter 7, or need to use Chapter 13.

Question 5

How long does bankruptcy stay on my credit report?

Accepted Answer

Up to 10 years for Chapter 7 and 7 years for Chapter 13. Many people begin rebuilding credit within a year or two.

Question 6

Can bankruptcy stop a foreclosure?

Accepted Answer

Filing usually pauses it through the automatic stay. Chapter 13 can let you catch up on missed payments over time and keep your home.

Question 7

Can student loans be wiped out in bankruptcy?

Accepted Answer

Rarely. You have to prove “undue hardship” in a separate court process, though recent federal guidance has made this somewhat easier for some borrowers.

Question 8

Will I lose my car in bankruptcy?

Accepted Answer

Often not, if your equity is protected by your state’s exemptions and you keep up payments. Chapter 13 can also help you catch up on a car loan.

Common questions: Bankruptcy basics