Two Roads Out

Bankruptcy law is technical, and the right chapter depends on income, assets, state exemptions, debts, goals, and recent financial activity. Treat this as orientation, not legal advice.

Chapter 7 can discharge many unsecured debts quickly for people who qualify, but non-exempt assets may be at risk.

Chapter 13 creates a court-supervised repayment plan, often used by people with steady income who need time to catch up on secured debts.

Some debts often survive bankruptcy, including domestic support obligations and many recent taxes. Student loans are not discharged by default, though some borrowers can seek discharge through an undue-hardship process. Talk to a qualified bankruptcy attorney or nonprofit credit counselor before deciding.