Debt and credit · Updated Oct 2026

I'm thinking about filing for bankruptcy

Bankruptcy is a federal court process that can wipe out many debts (Chapter 7) or set up a 3-to-5-year repayment plan (Chapter 13). Filing generally stops most collection, lawsuits and garnishments right away. You must take credit counseling from an approved agency within 180 days before filing, and some debts, like most student loans, recent taxes and child support, usually aren't wiped out.

This plan is general legal information, not legal advice. RobinClaim is not a law firm. Laws and deadlines change and have exceptions: check with the official source or a lawyer or legal aid office about your own case.

Build your plan

Choose your state and answer 3 quick questions. The plan below changes as you answer: steps that don't fit your answers are hidden, and your state's deadlines appear. It all happens in your browser. Nothing is sent, and the page address holds only your answers.

Your plan

Do now

  1. List all your debts, assets, income and monthly expenses.

    Why: The bankruptcy forms ask for all of it, and it shows whether bankruptcy helps you.

  2. If you answered “Stop a garnishment, levy, foreclosure or lawsuit now” to “What is your main goal?”

    If you face a foreclosure sale, repossession or garnishment in the next few days, contact a bankruptcy lawyer or legal aid immediately.

    Why: Filing generally stops these collection actions (the 'automatic stay'), but timing matters.

  3. If you answered “Yes” to “Have you filed bankruptcy before?”

    If you filed bankruptcy before, talk to a bankruptcy lawyer or legal aid before filing again.

    Why: There are waiting periods between discharges, and a case dismissed in the last 180 days can bar or limit a new filing.

  4. Don't run up new debt, move money to relatives, or pay back family members right before filing.

    Why: The trustee can undo some transfers and payments, and new debts may not be discharged.

This week

  1. Take credit counseling from a U.S. Trustee-approved agency and keep the certificate.

    Why: You can't file without counseling from an approved agency within 180 days before filing.

  2. Learn the difference: Chapter 7 sells non-exempt property to pay creditors and usually ends in a few months; Chapter 13 keeps your property while you pay a plan over 3 to 5 years.

    Why: The right chapter depends on your income, property and goals.

  3. If you answered “Keep my home or car while catching up on payments” to “What is your main goal?”

    If you want to keep a home or car while catching up on missed payments, ask about Chapter 13.

    Why: Chapter 13 lets you keep your property while you pay a court-approved plan over 3 to 5 years.

  4. If you answered “Above / Not sure” to “Is your household income below your state's median for your household size?”

    Check the means test using the U.S. Trustee's median income figures.

    Why: If your income is above the median, you may need to use Chapter 13.

  5. Get free or low-cost advice: legal aid, a law school clinic, or a bankruptcy lawyer's free consultation.

    Why: Mistakes in bankruptcy can cost you property or the discharge.

If it's not resolved

  1. After filing, go to the meeting of creditors and complete the debtor education course.

    Why: You must finish a financial management course to get a discharge.

  2. Check your credit reports after the discharge.

    Why: Discharged debts should show a zero balance. A bankruptcy can stay on your report for up to 10 years.

  3. Watch for scams: only approved agencies can provide the required counseling, and 'debt relief' companies are not lawyers.

    Why: Scammers target people in debt.

Deadlines

Credit counseling

General rule: Within 180 days before you file

Official source

Paying the Chapter 7 fee in installments

General rule: Up to 4 installments, last one no later than 120 days after filing (court permission needed)

Official source

How long a bankruptcy can stay on your credit report

General rule: Up to 10 years

Official source

Documents to gather

  • List of all debts with creditor addresses and amounts
  • Pay stubs for the last 6 months and tax returns
  • Bank statements
  • Car titles, mortgage or lease papers
  • Credit counseling certificate
  • Any lawsuits, judgments or garnishment papers

Where to go

Costs

Court filing fees: Chapter 7 is $338 ($245 filing fee + $78 administrative fee + $15 trustee surcharge); Chapter 13 is $313 ($235 + $78). Chapter 7 fees can be paid in up to 4 installments or waived if your income is below 150% of the poverty level and you can't pay even in installments. Counseling and debtor education courses usually cost a small fee and may be waived if you can't afford it. Lawyer fees vary.

Talk to a lawyer if

  • You own a home, have equity in a car, or have valuable property
  • Your income is above your state's median
  • A foreclosure, repossession or garnishment is about to happen
  • You filed bankruptcy before
  • You have tax debt, a business, or recent large transfers or payments to relatives

Free help

Free civil legal aid for people with low income: find your local program through the Legal Services Corporation (lsc.gov/about-lsc/what-legal-aid/get-legal-help) or LawHelp.org (lawhelp.org). Many legal aid offices handle debt collection lawsuits, garnishment and bankruptcy. Servicemembers can use their base legal (JAG) office. Some bankruptcy courts list free help desks and pro bono programs on their websites.

Questions

What is the credit counseling?

Within 180 days before you file

What is the paying the Chapter 7 fee in installments?

Up to 4 installments, last one no later than 120 days after filing (court permission needed)

What is the how long a bankruptcy can stay on your credit report?

Up to 10 years

When should I talk to a lawyer?

You own a home, have equity in a car, or have valuable property; Your income is above your state's median; A foreclosure, repossession or garnishment is about to happen; You filed bankruptcy before; You have tax debt, a business, or recent large transfers or payments to relatives.

How much does it cost?

Court filing fees: Chapter 7 is $338 ($245 filing fee + $78 administrative fee + $15 trustee surcharge); Chapter 13 is $313 ($235 + $78). Chapter 7 fees can be paid in up to 4 installments or waived if your income is below 150% of the poverty level and you can't pay even in installments. Counseling and debtor education courses usually cost a small fee and may be waived if you can't afford it. Lawyer fees vary.

Plans by state

This plan is the same in every state. Each state's RobinClaim page lists its courts, agencies and deadlines:

Sources

Plan checked Oct 2026. Independently fact-checked 2026-10-24.

This plan is general legal information, not legal advice. RobinClaim is not a law firm. Laws and deadlines change and have exceptions: check with the official source or a lawyer or legal aid office about your own case. How we research.