Frequently Asked Questions About Bankruptcy
Get answers to common questions about bankruptcy, debt relief, and financial recovery.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 eliminates most debts entirely, while Chapter 13 allows you to create a structured repayment plan.
Will bankruptcy stop wage garnishment?
Yes. Once you file for bankruptcy, an **automatic stay** is issued by the court, stopping wage garnishments immediately.
How long does bankruptcy stay on my credit report?
Chapter 7 remains for **10 years**, while Chapter 13 stays on your credit report for **7 years**.
Can I keep my house and car if I file for bankruptcy?
It depends on your case. **Chapter 7** allows you to keep exempt property, and **Chapter 13** lets you restructure payments to avoid foreclosure and repossession.
Will bankruptcy affect my spouse's credit?
If you file alone, your bankruptcy should not impact your spouse's credit. However, if you have **joint debts**, your spouse may still be responsible.
What debts cannot be discharged in bankruptcy?
Certain debts cannot be eliminated, including **student loans (in most cases), child support, alimony, recent tax debts,** and fines from criminal cases.