Bankruptcy is a legal process that may help people resolve certain debts. This page provides education on how bankruptcy works and what to expect. (EN/ES)

What's the difference between Chapter 7 and Chapter 13?

Chapter 7 and Chapter 13 are different types of bankruptcy with different timelines and repayment structures. We provide educational guidance to help you understand key differences and common questions. (EN/ES)

How does bankruptcy work?

Bankruptcy generally involves filing a case, completing required education steps, and following court procedures. Counseling and debtor education can help you understand the process and prepare financially. (EN/ES)

What is bankruptcy credit counseling?

Bankruptcy credit counseling is a required educational session that typically occurs before filing. It reviews your financial situation and outlines options, and a certificate is issued upon completion when applicable. (EN/ES)

How long does bankruptcy stay on your credit report?

The length of time bankruptcy may appear on a credit report can vary. We provide education on credit report impacts and steps that may help you rebuild credit health over time. (EN/ES)

Is Credit.org a law firm or legal service?

No. Credit.org is a nonprofit financial counseling agency. We provide education and counseling and do not provide legal advice. (EN/ES)

Do you provide services nationwide?

Yes. Credit.org provides phone and virtual counseling services across the United States. (EN/ES)

Nonprofit

Bankruptcy Counseling

Certified

Understand What Qualifies You for Bankruptcy

Bankruptcy can wipe out unsecured debt or restructure it into a plan you can actually afford, but it's not automatic relief. A means test decides whether you qualify for Chapter 7 bankruptcy or need to file Chapter 13 instead, and every consumer bankruptcy case starts with required credit counseling before you can file. Our counselors go through your income, debts, and creditors with you, explain what the bankruptcy code actually requires for Chapter 7, Chapter 11, or Chapter 13, and help you decide whether filing is the right move before you spend money on a filing fee you can't get back. Bankruptcy is one form of debt relief, and unlike a debt management plan or debt settlement, it goes through the courts and follows federal law rather than a negotiation with your creditors.

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Your options

What Bankruptcy Counseling Actually Covers

Identify Your Options, Make Informed Choices
Chapter 7 bankruptcy can discharge most unsecured debt in a matter of months, but only if you pass the means test, and it can mean giving up property that isn't exempt under your state's rules. Chapter 13 bankruptcy restructures what you owe into a three-to-five-year repayment plan and lets you catchup on mortgage arrears instead of losing your house. Chapter 11 is mostly for individuals whose debt is too high to qualify for Chapter 13 under the bankruptcy court's debt limits. Our counselors provide financial education and discuss alternatives; an attorney can advise which filing chapter is appropriate.

Protect Your Assets, Know Your Exemptions
Bankruptcy law sets exemptions, at the state or federal level, that determine whether you keep your car, your home equity, or your retirement account when you have secured debt tied to them. Filing also triggers an automatic stay, which stops most creditors from calling, suing you, or garnishing your wages on unsecured debt like credit cards or medical bills the moment your case is filed. Our counselors explain general bankruptcy concepts and financial alternatives. Consult an attorney for exemptions, eligibility and legal advice.

Rebuild Credit, Achieve Financial Stability
A Chapter 7 bankruptcy filing can stay on your credit report for up to 10 years, and a Chapter 13 filingfor up to 7 (TransUnion), but your score usually starts recovering well before either one drops off. We give you a specific plan for rebuilding credit during that window instead of just telling you it will get better.

Your journey

Step-by-Step
Bankruptcy Counseling Process

Step 01
Start With a Bankruptcy Counseling Session to Explore Options
The Pre-Filing Credit Counseling course is an online educational course followed by a personalized, one-on-one counseling session with a certified counselor. Together, you'll review your financial situation, explore available options, and better understand your alternatives before deciding whether bankruptcy is the right choice for you.

Step 02
Review Your Finances to Explore Whether Bankruptcy Is the Right Option for You
Review your financial situation with a certified counselor to better understand your debt, explore available alternatives, and make an informed decision about whether bankruptcy is the right option for you.

Step 03
Understand the Next Steps and What to Expect When Filing for Bankruptcy
Learn what to expect during the bankruptcy filing process, understand the steps involved, and gain the knowledge needed to make informed decisions as you move forward.

Step 04
Receive Resources to Rebuild After Bankruptcy and Regain Stability
Explore helpful resources and practical steps to rebuild your credit, manage your finances, and work toward long-term financial stability after bankruptcy.

Wherever You Are on Your Journey, We're Here to Help

No Obligation

No Pressure

Tools & resources

Bankruptcy
Tools Made to Help You

The bankruptcy process runs on paperwork and deadlines, and most of the mistakes we see when people are filing bankruptcy come from skipping a step, not from the law itself: your pre-filing counseling certificate, your means test numbers, your post-filing debtor education certificate, all required under the bankruptcy code. These tools help you get each one right, on time, so a paperwork mistake doesn't delay your discharge.

Understand Your Bankruptcy Options

Explore resources that explain bankruptcy law in plain terms, then talk to a counselor about which chapter actually fits your debts, and whether bankruptcy is the right debt relief option for you.

Explore Bankruptcy Resources

800-353-8971

Financial tools

Explore reverse mortgage estimates with guidance

Smart Retirement Planning
See how a reverse mortgage could impact your long-term financial security and provide extra cash flow when you need it most.
Clear Financial Insights
Understand how much equity you can access and how it could supplement your retirement income.
Personalized Loan Estimates
Get a tailored breakdown of potential loan amounts, interest rates, and repayment scenarios based on your home's value.

Explore Educational Calculator

Always Free

No Obligation

Confidential

For Educational Guidance

Estimated Home Value
Based on market data

$425,000

Sample estimate - actual values vary

Estimated Available Equity

~$210,000

Estimated Monthly Payment Option

~$1,050

Interest Rate Range

6.5% - 7.2%

These are sample estimates for illustration only. Speak with a certified counselor for accurate figures based on your situation.

Want personalized guidance?

Speak with a certified housing counselor to review your situation, questions, and next steps.

Schedule Counseling Appointment

Common questions

Bankruptcy FAQs

Answers to the most common questions about bankruptcy counseling.

Is Credit.org Approved by U.S. Trustees?

Yes. Credit.org is approved to issue Pre-filing Credit Counseling and Pre-discharge Debtor Education certificates in compliance with the bankruptcy code. Approval does not endorse or assure the quality of an agency's service.

Do I Need to See an Attorney Before My Session?

No. You're welcome to speak with a certified credit counselor at any point, before or after consulting an attorney.

How Soon Can I Schedule a Counseling Appointment?

You can schedule your appointment as soon as you complete your Pre-Filing Credit Counseling course, or call us at 888-425-3453 during business hours for assistance.

How Long Is a Bankruptcy Counseling Session?

Most sessions take up to 60 minutes, depending on your situation, questions, and the info you provide. We'll guide you through every step.

What Documents Do I Need to Bring to My Bankruptcy Counseling Session?

Bring a list of all debts, recent pay stubs, tax returns, bank statements, and any legal notices you have received. Your counselor will guide you on additional documents needed for your specific situation.

Can I Complete Bankruptcy Counseling Online?

Yes. We offer convenient online pre-filing credit counseling and pre-discharge debtor education sessions that you can complete from home at your own pace.

What Happens to My Creditors When I File for Bankruptcy?

Filing your bankruptcy petition triggers what the bankruptcy code calls an automatic stay, and it takes effect immediately, without a judge having to approve anything first. Once it's in place, creditorsgenerally can't keep calling you, file or continue a lawsuit against you, or garnish your wages. The stay isn't unlimited, a few actions like certain child support proceedings aren't covered, and it can belifted early in specific situations, but for most unsecured creditors it's the main reason people say bankruptcy finally gave them room to breathe.

Still have questions?

Speak with a certified counselor about your bankruptcy options.

Take the next step

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your finances?

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50+

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Helping homeowners make confident, informed decisions

4.9/5

Client satisfaction

Based on thousands of counseling sessions

Understand What Qualifies You for Bankruptcy

Pre-Filing Credit Counseling Online $45– One session for either a single filer or joint filers (if both attend together). Pre-Discharge Debtor Education $35– One session for either a single filer or joint filers.

What Bankruptcy Counseling Actually Covers

Identify Your Options, Make Informed Choices

Protect Your Assets, Know Your Exemptions

Rebuild Credit, Achieve Financial Stability

Step-by-Step Bankruptcy Counseling Process

Start With a Bankruptcy Counseling Session to Explore Options

Review Your Finances to Explore Whether Bankruptcy Is the Right Option for You

Understand the Next Steps and What to Expect When Filing for Bankruptcy

Receive Resources to Rebuild After Bankruptcy and Regain Stability

Wherever You Are on Your Journey, We're Here to Help

Bankruptcy Tools Made to Help You

Pre-Filing Credit Counseling

Pre-Discharge Debtor Education

Financial Calculators

Consumer Bankruptcy Resources

Explore reverse mortgage estimates with guidance

Smart Retirement Planning

Clear Financial Insights

Personalized Loan Estimates

Estimated Home Value

Bankruptcy FAQs

Still have questions?

Ready to take control of your finances?

Pre-Filing Credit Counseling Online
$45– One session for either a single filer or joint filers (if both attend together).

Pre-Discharge Debtor Education
$35– One session for either a single filer or joint filers.

Step-by-Step
Bankruptcy Counseling Process

Bankruptcy
Tools Made to Help You

Ready to take control of 
your finances?