Bankruptcy Services & Reviews

Advertiser Disclosure

If an individual's debt becomes too large to overcome, filing bankruptcy is often their last viable option for debt relief. Our experts have reviewed and rated the top bankruptcy filing services below. Rankings are based on each service's reputation, BBB ratings, and overall results for its clients:

  • Free consultations with a local bankruptcy attorney
  • Work with a nationwide network of sponsoring bankruptcy lawyers
  • Attorneys inform you of the bankruptcy laws that may help you eliminate debt
  • Gives people the breathing room they deserve
  • Quick and easy online forms to determine your bankruptcy case
  • Free, online live chat to get answers quickly
  • Outlines how your filing will affect your debt and your future


Overall Rating

Better Business Bureau In Business Since Free Consultation? Reputation Score
A+ 2005 Yes 9.0/10
  • Eliminate credit card and medical bills
  • Keep your home, car, wages and furniture
  • Automatic stay freezes collections immediately
  • A Chapter 7 case may be completed in as little as 4-5 months
  • Information provided so you can make powerful, educated decisions about your future
  • Request a free case evaluation


Overall Rating

Better Business Bureau In Business Since Free Consultation? Reputation Score
n/a 1939 Yes 8.5/10
  • In-house legal department
  • Full legal support in all bankruptcy jurisdiction
  • National recognition from Debtor's Counsel, Trustees and Judges
  • Advanced proprietary technology
  • Proven implementation methodology
  • Robust performance measurement and related reporting


Overall Rating

Better Business Bureau In Business Since Free Consultation? Reputation Score
A+ 1999 Yes 8.1/10

What is Bankruptcy and What Happens When You File?

Linsey Knerl

Expert Guide By:

Linsey Knerl, Finance Writer

Bankruptcy is a term we are hearing more and more these days. While it usually signals financial difficulty, there are many different situations that can cause it, and your personal experience with it will be unique. Before you go worrying about the long-term effects, consider this simple guide to bankruptcy.

Chapter 7 Bankruptcy Definition

Bankruptcy, specifically Chapter 7, is a legal procedure that can occur when a person can’t pay their debts with the assets or money they have on hand. It’s designed to liquidate (or sell) off property or assets so that the resulting proceeds can be used to pay off as many of the debts and loans as possible in a fair manner. While this type of bankruptcy rarely covers all that is owed, it rids the debtor of any further payment obligation. It also gives an opportunity for a fresh start for the person filing.

Chapter 11 Bankruptcy Definition

This type of bankruptcy is most popular among businesses and corporations, but it can be used by individuals, too. It is a formal restructuring of assets and debts, which allows the debtor to keep paying the debt over time without having to close his or her business. This complicated proceeding is not handled by many law offices.

Chapter 13 Bankruptcy Definition

Similar to Chapter 7 bankruptcy, Chapter 13 bankruptcy, also called a wage earner’s plan, is used by individuals. It enables people with regular income to develop a plan to repay all or part of their debt. Most plans require debtors to make installment payments to creditors for an additional three to five years after the proceeding, with any debt left after the plan period to be forgiven.

How to File Bankruptcy & When to Hire a Lawyer

The process may be very different depending on the type of bankruptcy you seek. While it is possible to file for bankruptcy yourself, most consumers aren’t well-versed in the constantly changing bankruptcy laws. It is usually recommended to get legal assistance in these important financial matters.

The first step is to find legal help that is experienced in the type of bankruptcy you seek and is actively taking on new clients. Most legitimate bankruptcy attorneys can give you a free consultation to help you decide if bankruptcy is right for you. Together, it’s possible to figure out in an hour or less which type of bankruptcy applies to your situation.

Cost to File Bankruptcy

The total number of hours your legal representation spends on your case and the type of bankruptcy you choose will determine how much you’ll pay. The filing fees for each type are as follows:

$335 for Chapter 7
$310 for Chapter 13
$275 for Chapter 12

Those who cannot afford the fees upfront can sometimes arrange waivers or payment arrangements. You can find applications to have bankruptcy filing fees waived on the website.

In addition to these fees and any legal counseling you receive, you will be required to take financial counseling and debt education courses prior to filing. The total for both may be between $70 and $100, although the fees may be waived due to inability to pay.

Bankruptcy and Student Loans

Most bankruptcy settlements will not discharge your student loan debt, and you will be responsible for paying it even after your proceedings. In very rare instances, however, student loan debt may be dischargeable if the court finds that paying off the loan will impose an “undue hardship” on the debtor and his or her dependents. Including student loans in your bankruptcy petition may at least get some of the debt discharged, if not all.

Bankruptcy and Medical Bills

Medical debt is the number one cause of bankruptcy filings, even outpacing credit cards. Medical debt, along with unsecured personal loans and credit cards, is nonpriority unsecured debt, which means it can be discharged without any repayment in a bankruptcy. Depending on the type of procedure you file, some or all of your medical bills can be forgiven.

Rebuilding Credit after Bankruptcy

While your credit history will show your bankruptcy for 10 years after you file, you can start rebuilding your credit right away. One good method to do so is by paying all of your utility and insurance bills on time, as well as opening a secured debit card account. By continually checking your annual free credit report, as well as monitoring your credit score, you can be sure you are starting your new financial life on the right foot.

Life after Bankruptcy

Many people have said that life post-bankruptcy is less stressful. Having the constant worry of unpaid bills and the calls from debt collectors is a part of being in debt they don’t miss. While the decision to file for bankruptcy isn’t for everyone, it’s possible to move on and make better choices with fewer day-to-day burdens. Regardless of which bankruptcy option you choose, getting sound financial advice from a professional is recommended to ensure the most successful path after bankruptcy.

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