Which chapter fits depends on your income, your debts and
what you are trying to protect. The consultation is free precisely so you can find out before
committing to anything.
Chapter 7 — the fresh start
For people who do not have the ability to pay their existing debts. In most cases you
discharge the debt and keep your property: most property ordinary people own is exempt from
seizure. If your income is above the median for your household size, a means test applies.
Court filing fee: $338, separate from attorney fees or costs.
Commonly eliminated: credit card debt, medical bills, judgments, negative bank balances,
some taxes, lawsuits, garnishments, debts left after a foreclosure or repossession, payday
loans.
Generally not eliminated: most student loans, some taxes, domestic support such as
spousal or child support, debts arising from criminal activity including drunk driving, court
fines and traffic tickets.
Chapter 13 — repayment over time
For people with regular income who want to pay all or part of what they owe in instalments,
over three or five years, under a court-approved plan. This is the usual route to stopping a
foreclosure and catching up a mortgage, and it can sometimes eliminate a second mortgage.
Court filing fee: $313, separate from attorney fees or costs.
Chapter 11 — reorganisation
Mainly for businesses, but available to individual consumer debtors. The provisions are
complicated and any decision to file one should be reviewed with an attorney.
Court filing fee: $1,738, separate from attorney fees or costs.
Chapter 12 — family farmers and fishermen
Similar to Chapter 13, but limited to those whose income comes primarily from a family-owned
farm or commercial fishing operation.
Court filing fee: $278, separate from attorney fees or costs.
Court filing fees change from time to time. The authoritative schedule is published by the
United States Courts.