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Considering Bankruptcy

Bankruptcy is a legal tool, not a failure. Understand your options before deciding.

What to Do Right Now

1

Take the Means Test

The means test determines whether you qualify for Chapter 7 (debt discharge) or Chapter 13 (repayment plan).

2

Calculate Your Debt

Total up all debts — credit cards, medical bills, loans. Know exactly what you owe and to whom.

3

Understand the Impact

Chapter 7 stays on your credit 10 years, Chapter 13 for 7. But rebuilding starts immediately after discharge.

4

Get Free Legal Consultation

Many bankruptcy attorneys offer free initial consultations. Legal aid can also help.

5

Try Alternatives First

Nonprofit credit counseling, debt negotiation, and hardship programs may resolve your situation without bankruptcy.

Recommended Tools

Helpful Resources