There are two common options for individuals: Chapter 7 bankruptcy (liquidation) and Chapter 13 bankruptcy (debt reorganization/repayment plan). Chapter 7 can eliminate many unsecured debts but may require liquidation of non‑exempt assets. Chapter 13 allows you to keep property and repay debts over time through a structured plan.

Chapter 7 is generally available to individuals, couples, and many business‑owners — provided that you meet the “means test,” which compares your average monthly income to state median thresholds and reviews disposable income vs. expenses.

Not necessarily. With Chapter 13, you often can keep your home or vehicle as long as you stay current on payments and abide by the repayment plan. With Chapter 7, certain property may be protected (“exempt”), though non‑exempt assets might be liquidated.

No. Bankruptcy discharges many unsecured debts (credit cards, medical bills, personal loans, etc.), but some debts typically survive: student loans, recent tax debts, child support/alimony, and certain court‑ordered obligations.

Yes. Once you file your petition, an “automatic stay” goes into effect — creditors must halt collection efforts, lawsuits, wage garnishments, foreclosures or repossessions.

For Chapter 7, the process typically lasts a few months; for Chapter 13, repayment plans usually span 3 to 5 years depending on income and debt amounts.

No. It is illegal for an employer to fire, demote, or otherwise discriminate against you solely because you filed for bankruptcy.