Bankruptcy

Get a Free Savings Quote* & Consultation

Financial education and referrals—so you can choose with confidence.

Get a Savings Quote*

Book About BankruptcyBankruptcy

 

If you’re facing garnishment, foreclosure, repossession, or debts you can’t manage, bankruptcy may be one option to consider. Money Student is a financial education and referral platform—we don’t provide legal services. If you’d like professional help, we can introduce you to independent bankruptcy attorneys for a free, no-obligation consult so you can understand your choices.

What bankruptcy may help with

 

    • Stopping most collections through the automatic stay (calls, lawsuits, garnishments, and many foreclosures typically pause once a case is filed).
    • Eliminating many unsecured debts through a discharge (e.g., some credit cards, medical bills, many personal loans).
    • Catching up on certain secured debts (e.g., mortgages or auto loans) through a court-approved plan, depending on the chapter.
    • Preventing utility shutoffs related to past-due amounts in some situations.

What bankruptcy generally can’t do

 

    • Remove a lender’s lien without conditions—keeping collateral (like a car or home) usually requires continuing payments or meeting specific rules.
    • Erase certain debts, such as most student loans, recent taxes, child support, or criminal fines (there are limited exceptions that a lawyer can explain).
    • Protect a co-signer—your discharge typically does not wipe out the co-signer’s obligation.
    • Fix debts incurred after filing—only pre-filing debts are typically addressed.

Chapters people often ask about

 

 

    • Chapter 7 (“liquidation”) – Often the fastest path to a discharge for eligible filers; a means test and other rules apply.
    • Chapter 13 (“repayment plan”) – A structured 3–5 year plan to catch up or reorganize eligible debts and protect certain assets.
    • Business options (e.g., Chapter 11/Subchapter V) – Reorganization paths for qualifying businesses.

 

Timing, eligibility & next steps

 

 

    • Eligibility, exemptions, and outcomes vary by state and situation. Waiting-period rules also apply between discharges (for example, between Chapter 7 discharges it’s typically eight years).
    • The best way to know if, when, and which chapter may fit is to speak with a qualified attorney. We can connect you to an independent lawyer for a free case review to discuss pros/cons, costs, and alternatives.

 

Note: This page is general education, not legal advice. Money Student is not a law firm and does not provide legal services. Any legal engagement would be directly between you and the attorney you choose.