Bankruptcy in the U.S.
A Legal Option to Get Out of Debt
Bankruptcy can help you eliminate or reorganize your debts and give you a fresh financial start.
What Is Bankruptcy Law and How Does It Work?
U.S. Bankruptcy Law provides legal protection for individuals and businesses that are unable to pay their debts.
A Trustee reviews your case to determine the best solution for your financial situation.
Review Your Case
The Trustee analyzes your financial situation and debts to understand your case.
Verify Documents
Your information and submitted documentation are reviewed and validated.
Evaluate Payment Options
The Trustee determines whether you can pay your debts or qualify to have them discharged.
Chapter 7
- Eliminates unsecured debts.
- Process usually takes 3 to 6 months.
- Ideal for individuals and married couples.
- Usually does not require payments to creditors.
Chapter 13
- Payment plan from 3 to 5 years.
- Stops interest accumulation.
- May reduce total debt.
- For those who do not qualify for Chapter 7.
Chapter 11
- For businesses and corporations.
- Debt reorganization.
- Contract renegotiation.
- More complex process.
Other Chapters
Chapter 9: municipalities.
Chapter 12: farming and fishing families.
Chapter 15: international cases.
Why Does Bankruptcy Exist?
Bankruptcy exists to offer a “fresh start” to honest people who, due to circumstances beyond their control, are unable to pay their debts.
It is a legal tool that protects debtors and promotes a fairer and healthier economy.
Fresh Financial Start
It allows you to reorganize or eliminate debts and start over.
Protects the Honest Debtor
It provides legal protection for people acting in good faith.
Reactivates the Economy
It helps people participate in the economy again.
Reduces Debt Pressure
It relieves stress and improves your quality of life.
FAQs / Videos
Answers to Frequently Asked Questions. Learn more about bankruptcy and get answers to your questions through our videos.
Feeling Overwhelmed by Debt?
Bankruptcy may be the first step toward regaining your financial stability.