Most people wait too long - or file the wrong chapter. A two-minute read could save you thousands.
Bankruptcy is powerful - but it's not the only option. Depending on your situation, debt settlement or a debt management plan could resolve what you owe for less money and without the long-term credit impact.
Filing bankruptcy stays on your credit report for 7-10 years. Before going down that path, it's worth understanding all your options so you can pick the one that actually fits.
Chapter 7 wipes out most unsecured debt entirely - typically in 3-4 months. But you have to pass the "means test," which looks at your income relative to your state's median. If you earn too much, you may not qualify.
Chapter 13 restructures your debt into a 3-5 year repayment plan. You keep your assets, but you're committing to years of court-supervised payments.
The bankruptcy means test compares your household income against the median for your state and household size. It's the first thing any bankruptcy attorney will check - and it takes about 60 seconds to get a preliminary answer yourself.
If your income falls below the median, you likely qualify for Chapter 7. If it's above, you'll probably be directed toward Chapter 13 - or you may want to explore non-bankruptcy alternatives first.
Take the free bankruptcy means test. No email required. Get your answer in 60 seconds.
You're in good hands
