Frequently asked questions
Bankruptcy FAQ: Answers to the Most Common Questions
The most common bankruptcy questions, answered in plain English — garnishment, credit impact, what you keep, and more.
Everything people ask us, in one place
Below are the questions we hear most often about bankruptcy — general information only, since every case depends on your specific facts and state.
Will bankruptcy stop wage garnishment?
Filing generally triggers an automatic stay that stops most garnishment and collection activity immediately, with some exceptions like certain support obligations.
How long does bankruptcy stay on my credit report?
Chapter 7 can remain up to about ten years; Chapter 13 typically around seven — the exact impact on your score fades faster than the listing itself.
Can I file for bankruptcy more than once?
Yes, though there are waiting periods between certain chapter combinations before you can receive another discharge.
Will I lose everything if I file?
Most filers keep essential property through exemptions — a modest car, work tools, and often meaningful home equity depending on your state.
Does bankruptcy erase all debt?
No. Most unsecured debt like credit cards and medical bills can be discharged, but many student loans, recent taxes, and support obligations typically survive.
Can I keep a credit card after filing?
Sometimes, if the account isn't included in your filing and the issuer chooses to keep it open — but many accounts close automatically once a filing is reported.
What's the difference between Chapter 7 and Chapter 13?
Chapter 7 can discharge qualifying debt fairly quickly through liquidation; Chapter 13 involves a 3-5 year repayment plan, often used to catch up on a mortgage.
Do I have to go to court?
Most individual cases involve a short meeting with the trustee (the 341 meeting) rather than a courtroom trial.
Still researching? These help
Independently useful references readers on this topic often pick up — as an Amazon Associate we may earn from qualifying purchases.
Bankruptcy basics bookA broad, plain-English overview
Amazon →Credit repair after bankruptcy guideUnderstand the recovery timeline
Amazon →Debt & bankruptcy FAQ referenceAnswers to the most common questions
Amazon →General legal information for educational purposes only — not legal advice, and no attorney-client relationship is created. Laws vary by state and change over time; confirm details with a licensed attorney in your state.