Bankruptcy & Debt Relief — Explained by State
Every state handles bankruptcy differently. The exemptions that protect your home in Texas won’t help you in Georgia. The attorney fees you’d pay in Los Angeles have nothing in common with what a filer pays in Columbus. And the means test that determines whether you even qualify for Chapter 7 uses income thresholds that shift by state and household size. This bankruptcy guide exists because those differences matter — and most sites either ignore them or bury them in outdated data tables.
We’re an independent editorial team that got tired of watching people
make bad decisions based on bad information. Every guide on this site
is written in plain language, organized by state, and built around the
questions filers actually ask — not the questions SEO tools say to target.
We research every figure from primary government sources and update our
guides as laws and thresholds change.
Chapter 7 Bankruptcy — State Guides
Chapter 7 is the faster path. Most unsecured debt gets wiped out, and the whole process wraps up in a matter of months. But “fast” comes with trade-offs — you have to qualify through the means test, and what you get to keep depends on your state’s exemption laws. Some states are generous. Others are not.
- Chapter 7 Bankruptcy in California — the only state where filers choose between two completely separate exemption systems.
- Chapter 7 Bankruptcy in Texas — unlimited homestead exemption makes this one of the most filer-friendly states in the country.
- Chapter 7 Bankruptcy in Florida — another unlimited homestead state, but with a residency rule that trips up recent transplants.
- Chapter 7 Bankruptcy in Illinois — three districts, moderate exemptions, and a Northern District that handles massive volume.
- Chapter 7 Bankruptcy in Ohio — filers pick between state and federal exemption systems depending on what they own.
- Chapter 7 Bankruptcy in Georgia — wildcard stacking makes Georgia surprisingly useful for renters with no home equity to protect.
- Chapter 7 Bankruptcy in Tennessee — modest exemptions, three districts, and a growing number of filings statewide.
Chapter 13 Bankruptcy — State Guides
Chapter 13 takes longer — three to five years — but it lets you keep assets that Chapter 7 might not protect. If you’re behind on mortgage payments, own a home with equity beyond your exemption limits, or earn too much to qualify for Chapter 7, this is usually where you end up. The repayment plan is court-supervised, and completion rates vary by district.
- Chapter 13 Bankruptcy in California — plan confirmation across four districts and how California’s exemption choice carries into Chapter 13.
- Chapter 13 Bankruptcy in Texas — how Texas’s broad exemptions interact with repayment plan calculations.
- Chapter 13 Bankruptcy in Florida — homestead protections and what to expect from Florida’s three districts.
- Chapter 13 Bankruptcy in Illinois — disposable income calculations and the Northern District’s heavy caseload.
- Chapter 13 Bankruptcy in Ohio — cram-down rules, exemption choices, and Ohio’s two-district setup.
- Chapter 13 Bankruptcy in Georgia — one of the busiest bankruptcy courts in the country and what that means for filers.
- Chapter 13 Bankruptcy in Tennessee — plan structure and how Tennessee’s three districts handle repayment cases.
How Much Does Bankruptcy Cost Where You Live?
The court filing fee is the same everywhere — it’s set by federal statute and published at uscourts.gov. Attorney fees are a different story. What you pay depends heavily on your metro area, which chapter you file, and how complicated your case is. These city guides cover the real cost picture in each market.
- Bankruptcy Cost in Houston — attorney fees in the Southern District of Texas.
- Bankruptcy Cost in Dallas — what filers pay in the Dallas–Fort Worth metro.
- Bankruptcy Cost in Miami — South Florida attorney fees and the Southern District.
- Bankruptcy Cost in Orlando — Middle District of Florida costs.
- Bankruptcy Cost in Chicago — what filers pay in Northern Illinois.
- Bankruptcy Cost in Columbus — Columbus-area fees in the Southern District of Ohio.
- Bankruptcy Cost in Atlanta — attorney fees in one of the busiest bankruptcy courts in the nation.
- Bankruptcy Cost in Phoenix — what filers pay in the District of Arizona.
Chapter 7 vs. Chapter 13 — Quick Comparison
| Factor | Chapter 7 | Chapter 13 |
|---|---|---|
| How it works | Liquidation — most unsecured debt discharged | Reorganization — repay through a court-approved plan |
| Timeline | Typically a few months | Three to five years |
| Income requirement | Must pass the means test | Must have regular income; debt limits apply |
| Keep your home? | Only if current on mortgage and within exemption | Yes — catch up on missed payments through the plan |
| Keep your car? | Only if current and within exemption | Yes — cram-down may reduce the loan balance |
| Best for | Lower-income filers with few assets | Homeowners, higher earners, or filers protecting assets |
What Debts Does Bankruptcy Actually Erase?
Not everything. That’s worth understanding before you spend time or money on the process.
Bankruptcy typically wipes out credit card balances, medical bills, personal loans, payday loans, utility arrears, most older civil judgments, and many lease or contract obligations. Those are the debts that make Chapter 7 feel like a genuine reset.
What it won’t touch: child support, alimony, most tax debts, criminal fines and restitution, and debts from fraud or willful misconduct. Student loans fall in a gray area — technically dischargeable through an adversary proceeding, but the standard is steep and most filers don’t clear it.
If most of what you owe is in the first group, bankruptcy probably does what you need. If it’s mostly in the second group, filing may not solve the problem.
Guides & Resources
- Chapter 7 vs Chapter 13: How to Choose the Right One — side-by-side comparison of costs, timelines, qualifications, and outcomes.
- What Happens at the 341 Meeting of Creditors — what the trustee asks, what to bring, and how to prepare.
- Can You File Bankruptcy Without a Lawyer? — when going pro se makes sense and when it’s a bad idea.
- How to Rebuild Credit After Bankruptcy — a realistic timeline for recovering your score after discharge.
- Debts Bankruptcy Can’t Erase — student loans, taxes, child support, and what options remain.
Frequently Asked Questions
What’s the difference between Chapter 7 and Chapter 13?
Chapter 7 eliminates most unsecured debt through liquidation and finishes in a few months. Chapter 13 sets up a court-supervised repayment plan over three to five years. Chapter 7 is built for filers with lower income and fewer assets. Chapter 13 is built for people who want to keep their home, earn too much for Chapter 7, or need to protect property that exemptions wouldn’t cover.
How much does it cost to file?
The court filing fee is set by federal statute — same in every state — and published at uscourts.gov. Attorney fees vary significantly by metro area and chapter. Our city cost guides break down what filers actually pay in each market.
Will filing stop creditor calls and lawsuits?
Immediately. The moment your case is filed, a federal automatic stay kicks in and halts collection calls, wage garnishments, lawsuits, and most foreclosure actions. The stay remains in effect throughout your case.
Can I keep my house?
In Chapter 13, yes — you stay current on your mortgage and catch up on arrears through the plan. In Chapter 7, it depends on whether your equity falls within your state’s homestead exemption. States like Texas and Florida offer far more protection here than others.
How long does bankruptcy stay on my credit report?
Ten years for Chapter 7, seven for Chapter 13. But the practical damage fades faster than the line item — most filers start rebuilding within a year or two of discharge.
Do I need a lawyer?
You can legally file without one. Whether you should depends on the complexity of your case. Exemption strategy, means test calculations, and federal court procedures all create room for expensive mistakes. Most bankruptcy attorneys offer free consultations, and our state guides cover typical fees by district.
What is the means test?
A formula that compares your household income to the median income for your state and household size. Below the median, you qualify for Chapter 7. Above it, a second calculation determines whether Chapter 13 is required. Current median figures are published at justice.gov/ust/means-testing.
How do I figure out which chapter is right for me?
Start with the means test — that determines whether Chapter 7 is even available. Then look at what you’re trying to protect. Homeowners with equity, filers behind on mortgage payments, and anyone whose assets exceed their state’s exemption limits generally land in Chapter 13. The state guides on this site walk through the decision based on each state’s specific rules.
Last reviewed by American Debt Guide Editorial Team.