Filing for bankruptcy starts with a means test to see if you qualify for Chapter 7 or Chapter 13. You must complete a credit counseling course from a government-approved agency within 180 days before filing. Then you submit a petition, schedules of assets and debts, and required financial documents to your local bankruptcy court. Automatic stay goes into effect immediately, stopping most collection calls and lawsuits.
If you are asking this question, you likely face significant unsecured debt—credit cards, medical bills, personal loans—with little ability to pay. You may have missed several payments, and collection activity has escalated. Your risk level is high because bankruptcy stays on your credit report for 7 to 10 years, and you may lose non-exempt property in Chapter 7. Chapter 13 requires a 3-to-5-year repayment plan, which demands steady income. Professional review is useful if your income is above your state’s median, you own a home with equity, or you have tax debts or student loans that may not be dischargeable.
A reasonable path forward is to first gather your last six months of pay stubs, tax returns, a list of all creditors with balances, and a monthly budget. Then contact a local bankruptcy attorney for a free initial consultation. Many offer flat fees for Chapter 7 filings, typically ranging from $1,200 to $2,500. Tradeoffs: Chapter 7 gives faster relief but stricter eligibility; Chapter 13 protects assets but requires consistent payments.
Debt relief options vary by state, debt type, hardship level, account status, and partner criteria. Not all debts qualify, and not everyone qualifies for every program.
Before you meet with an attorney, you can get a preliminary picture of your situation using the DebtSense AI assessment on this site’s homepage. It is private, no commitment, and gives you a clear starting point based on your specific numbers. Use it to see what options might fit before you speak with anyone.
Debt question guide