Bankruptcy is a process under federal law that allows debtors who owe more money than they can pay to either eliminate their debts or work out a payment plan to pay a portion or all of their debts over time.

Will bankruptcy stop all the harassing phone calls and mail from bill collectors? 

Yes. An “automatic stay” will take effect when you file your case. It will stop the creditor harassment.

Will bankruptcy stop a wage garnishment from a lawsuit over an unsecured debt? 

Yes. The automatic stay will stop the garnishment.

How long will bankruptcy remain on my credit report?

Bankruptcy can remain on your credit report for ten years.

What does “secured” or “unsecured” debt mean?

Secured debt is debt in which creditors have a lien on particular assets and that allows a creditor to make a claim on those assets. Unsecured debt is debt that creditors have no claim to your assets.

What happens if I file and discover another debt after filing?

Your lawyer can amend your case to include any additional debts you may find after the case is filed.

Can all debts be discharged?

No. There are certain debts — such as student loans, government loans, back taxes and other debts — that cannot be discharged.

Am I going to lose my personal property if I file bankruptcy?

There are exemptions that allow you to keep a certain amount of personal property.