Bankruptcy basics
How a bankruptcy case works
The building blocks of a bankruptcy case: two legal provisions, one property concept, and the people in it.
Why people file
What bankruptcy is for
People file bankruptcy for two main reasons: to stop debt collection, including lawsuits, and to eliminate or reduce debts.
I'll help you understand how bankruptcy works and what it takes to get there.
The automatic stay
The automatic stay is the protection you get when your case is filed. It stops creditors and debt collectors from taking collection actions against you and your property: calls, demands, lawsuits, foreclosures and repossessions.
It is automatic because it takes effect immediately on filing.
How the automatic stay works →The discharge
The discharge is an order entered by the bankruptcy judge that eliminates debts. It ends your legal obligation to pay the discharged debts and prohibits your creditors from trying to collect them.
It is available in both Chapter 7 and Chapter 13, generally toward the end of the case. Not every debt is discharged: Congress kept a short list off the table.
What the discharge does →Property and people
The bankruptcy estate, the debtor and the creditors
The bankruptcy estate
The estate is created the moment your case is filed, and it consists of all your property interests.
It matters before you file, when you file, while your case is pending, and for a short time after your case is over. We go through what you own before you file, not after.
What the bankruptcy estate is →The debtor
The debtor is the person who files the bankruptcy case. Married couples can file together in one case as joint debtors.
More about the debtor →Creditors
Creditors are divided into classes, and their claims are treated differently. The creditors you have affect which chapter you should file under.
How creditors are treated →Arrange a consultation to go over your own situation
We look at your debts, income and property, and at how these basics apply to you.
Consumer cases start with a free consultation by phone, Zoom or in person, with a consultation agreement signed first. If you leave a message, please leave only your name and number.
This page is general information, not advice about your case.