Bankruptcy Lawyers — What They Do & When You Need One

Bankruptcy is a federal legal process that stops collection, garnishment and foreclosure the moment you file and discharges most unsecured debt. Chapter 7 wipes out debt in a few months for people who qualify under the means test; Chapter 13 reorganizes payments over three to five years and can save a home from foreclosure. Exemptions decide what you keep, and they vary by state.

What a bankruptcy lawyer does

Determines whether Chapter 7 or 13 fits and whether you pass the means test
Maximizes exemptions so you keep your home, car and retirement
Prepares the petition and schedules and attends the trustee meeting with you
Stops garnishments, lawsuits and foreclosure through the automatic stay

When you need a bankruptcy lawyer

You are behind on your mortgage or car and facing foreclosure or repossession
Wages are being garnished or a creditor has sued you
Medical bills or credit cards exceed what you could repay in five years
Your business is failing and you personally guaranteed its debts

Questions to ask before you hire a bankruptcy lawyer

Which chapter fits me, and what would I keep?
Which of my debts will not be discharged?
What is your total fee including filing fee and credit counseling?
What should I stop doing right now — transfers, payments to family, new charges?

Common questions

Will I lose my house or car?

Usually not. Exemptions protect equity up to state limits, and secured debt can be kept current or reorganized in Chapter 13. A lawyer will run your numbers before you file.

Can student loans or taxes be discharged?

Student loans only in limited hardship cases, though recent federal guidance has made it somewhat easier. Older income taxes can be discharged if specific timing rules are met.

Find a bankruptcy lawyer near you

Choose your state to see listed firms and the official bar directory for verifying any lawyer’s license.