Best Bankruptcy Lawyers in the USA

Frequently Asked Questions

What does a bankruptcy lawyer actually do for you?

A bankruptcy lawyer guides you through the legal process of eliminating or restructuring your debt. They analyze your financial situation, determine which bankruptcy chapter fits your circumstances, and handle all court filings and creditor communications.

Your attorney prepares the extensive paperwork required under 11 U.S.C. § 521, which lists everything you must disclose about your assets, debts, income, and expenses. They represent you at the 341 Meeting of Creditors, where a trustee questions you under oath about your finances.

Beyond paperwork, your lawyer protects your property by applying federal and state exemptions correctly. They also negotiate with creditors, object to improper claims, and ensure you receive the debt relief the law allows.

How much do bankruptcy attorneys charge?

Bankruptcy attorney fees vary based on case complexity and geographic location. Chapter 7 cases typically cost between $1,000 and $2,500 in attorney fees, while Chapter 13 cases range from $2,500 to $6,000.

Chapter 7 fees are usually paid upfront before filing. Chapter 13 cases offer more flexibility since attorneys can include their fees in your repayment plan under 11 U.S.C. § 330, meaning you pay over time rather than all at once.

Additional costs include the court filing fee ($338 for Chapter 7, $313 for Chapter 13 as of 2024), credit counseling courses ($15-50 each), and any document preparation expenses. Some attorneys offer payment plans for the upfront portion.

Should I file Chapter 7 or Chapter 13 bankruptcy?

Your income level, asset ownership, and debt type determine which chapter works best for you. Chapter 7 eliminates most unsecured debt in 3-4 months but requires passing the Means Test under 11 U.S.C. § 707(b).

Chapter 7 works well if your income falls below your state's median, you have limited assets, and you don't need to catch up on mortgage or car payments. The downside is you might lose non-exempt property, and the filing stays on your credit report for 10 years.

Chapter 13 suits people with regular income who want to keep property while repaying debt over 3-5 years. You can cure mortgage arrears, strip certain liens, and the filing disappears from your credit report after 7 years. However, you commit to years of court-supervised payments.

What questions should I ask when comparing bankruptcy lawyers?

Start by asking about their specific bankruptcy experience. Find out how many cases they've filed in the past year, their success rate, and whether they focus primarily on consumer bankruptcy rather than handling it as a side practice.

Ask about their process for determining which chapter you should file. A thorough attorney analyzes your complete financial picture before recommending anything. Be cautious of lawyers who suggest a chapter within minutes of meeting you.

Important practical questions include:

• Who handles my case day-to-day—you or a paralegal?
• How do you communicate updates, and how quickly do you respond?
• What's included in your flat fee, and what costs extra?
• Have you handled cases with my specific issues (business debt, tax liens, pending lawsuits)?

Can bankruptcy stop foreclosure, wage garnishment, or lawsuits?

Yes, filing bankruptcy triggers an automatic stay under 11 U.S.C. § 362. This federal protection immediately halts most collection actions, including foreclosure proceedings, wage garnishments, bank levies, and civil lawsuits.

The automatic stay takes effect the moment your petition reaches the bankruptcy court. Creditors who violate it can face sanctions. However, the stay doesn't last forever, and some debts like child support continue despite it.

For foreclosure specifically, Chapter 13 offers the strongest protection. You can cure your mortgage arrears over 3-5 years while resuming regular payments. Chapter 7 only delays foreclosure temporarily unless you can quickly catch up or negotiate with your lender.

What debts cannot be eliminated in bankruptcy?

Certain obligations survive bankruptcy regardless of which chapter you file. The Bankruptcy Code under 11 U.S.C. § 523 lists specific non-dischargeable debts that remain your responsibility.

Common debts you cannot discharge include:

• Child support and alimony obligations
• Most federal student loans (unless you prove undue hardship)
• Recent income taxes (generally within 3 years)
• Debts from fraud, embezzlement, or willful injury
• Criminal fines and restitution
• DUI-related injury claims

Some debts require a creditor to object within a deadline, or they become dischargeable. Your attorney reviews your specific debts to identify which ones you can eliminate and which will remain after your case closes.

How do I verify a bankruptcy lawyer's credentials and reputation?

Check your state bar association's website to confirm the attorney holds an active license with no disciplinary actions. The American Board of Certification offers optional bankruptcy specialization credentials, though not all competent attorneys pursue this designation.

Review their court experience by searching federal bankruptcy court records. PACER (Public Access to Court Electronic Records) lets you see how many cases they've filed recently and whether judges have noted any issues with their work.

Client reviews provide real-world insight, but read them critically. Look for patterns in feedback rather than isolated complaints. Pay attention to comments about communication, responsiveness, and whether clients felt informed throughout their cases. Ask the attorney for references from past clients if reviews seem sparse.

What happens at the 341 Meeting of Creditors?

The 341 Meeting is a brief hearing required in every bankruptcy case under 11 U.S.C. § 341. A court-appointed trustee, not a judge, conducts the meeting and asks you questions under oath about your bankruptcy paperwork.

Typically, the meeting lasts 5-15 minutes. The trustee verifies your identity, confirms the accuracy of your filings, and asks about your assets, income, and debts. Creditors have the right to attend and question you, though most don't appear.

Your attorney prepares you beforehand and attends with you. Common questions include whether you reviewed your paperwork, own any property not listed, expect to receive money from lawsuits or inheritances, and why you're filing for bankruptcy. Answer honestly and briefly—volunteering extra information rarely helps.

How long does the bankruptcy process take from start to finish?

Chapter 7 cases typically conclude within 3-4 months from filing to discharge. The timeline includes a mandatory waiting period after your 341 Meeting before the court grants your discharge.

Chapter 13 cases last much longer because they involve a repayment plan. You spend 3-5 years making monthly payments to a trustee who distributes funds to creditors. Your discharge comes only after completing all plan payments.

Pre-filing preparation adds time to both chapters. You must complete credit counseling, gather financial documents, and allow your attorney to prepare accurate schedules. Rushing this phase leads to errors that cause delays or case dismissal. Most attorneys need at least 2-4 weeks to prepare your petition properly.

Will I lose my house, car, or retirement savings in bankruptcy?

Bankruptcy exemptions protect essential property from liquidation. Federal exemptions under 11 U.S.C. § 522 and state-specific exemption laws let you keep assets up to certain values.

Your home receives protection through homestead exemptions, which vary dramatically by state. Some states offer unlimited protection, while others cap it at specific dollar amounts. Your equity in the home matters most—if your equity exceeds your exemption, Chapter 7 trustees might sell the property.

Retirement accounts like 401(k)s and IRAs receive strong federal protection under ERISA and the Bankruptcy Abuse Prevention and Consumer Protection Act. These accounts are typically fully exempt regardless of their value. Vehicles receive limited exemptions, so cars with high equity or expensive luxury vehicles might be at risk in Chapter 7.

What red flags indicate a bankruptcy lawyer might not be trustworthy?

Be wary of attorneys who guarantee specific results. No lawyer can promise your case will succeed or that you'll keep all property. Bankruptcy outcomes depend on facts, applicable law, and sometimes trustee discretion.

Other warning signs include:

• Pressure to sign a retainer immediately without consultation
• Unwillingness to explain fees in writing
• Suggesting you hide assets or transfer property before filing
• Extremely low fees compared to market rates (may indicate inexperience or hidden costs)
• No clear explanation of which chapter suits your situation

Avoid "petition preparers" who aren't licensed attorneys. These services fill out forms but cannot provide legal advice. They often miss exemption opportunities or file incorrect paperwork that leads to case dismissal or loss of property you could have protected.

How does bankruptcy affect my credit score and future borrowing?

Bankruptcy causes a significant initial credit score drop, often 100-200 points. The filing appears on your credit report for 7 years (Chapter 13) or 10 years (Chapter 7) under the Fair Credit Reporting Act.

However, many people see credit improvement within 12-18 months of discharge. You've eliminated overwhelming debt, which improves your debt-to-income ratio. Secured credit cards and credit-builder loans help rebuild your score when used responsibly.

Future borrowing becomes possible sooner than many expect. FHA mortgages require waiting 2 years after a Chapter 7 discharge with re-established credit. Auto loans remain available immediately after discharge, though interest rates run higher initially. Each year after bankruptcy, with responsible credit use, your terms improve.

Do I need a lawyer, or can I file bankruptcy myself?

You can legally file bankruptcy without an attorney (called filing "pro se"), but the risks usually outweigh the cost savings. Bankruptcy law is complex, and mistakes can result in case dismissal, loss of property, or failure to discharge certain debts.

Pro se filers face challenges, including:

• Correctly completing 50+ pages of detailed forms
• Understanding exemption laws that protect your property
• Meeting strict deadlines that courts enforce rigidly
• Responding appropriately to trustee objections or creditor motions
• Knowing when procedural rules require specific legal filings

Statistics show pro se Chapter 13 cases have significantly higher dismissal rates than attorney-represented cases. Even simple Chapter 7 cases involve nuances that affect your outcome. Most attorneys offer free initial consultations, so discussing your situation costs nothing but could save you from expensive mistakes.