American Debt Guide is a free resource helping Americans understand their options when dealing with debt, bankruptcy, and financial hardship. Our guides cover Chapter 7 and Chapter 13 bankruptcy, debt consolidation, credit counseling, and the real costs of getting out of debt — broken down by state and city.
All content is written for informational purposes only. We are not a law firm. Always consult a licensed attorney or financial advisor before making decisions about your debt situation.
Bankruptcy Guides by State
Bankruptcy laws, income limits, and exemptions vary significantly by state. Use our state-specific guides to understand exactly how Chapter 7 and Chapter 13 bankruptcy work where you live.
More state guides are being added weekly. Check back for guides covering Texas, Florida, California, Ohio, Tennessee, and more.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a federal legal process that eliminates most unsecured debts — including credit cards, medical bills, and personal loans — in approximately 3 to 5 months. It is the most common form of personal bankruptcy in the United States, accounting for roughly two out of every three consumer bankruptcy filings.
Eligibility is determined by the bankruptcy means test, which compares your household income to your state’s median income. If your income falls below the threshold, you automatically qualify. Higher earners may still qualify after deducting allowable expenses.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows individuals with regular income to repay debts through a structured 3 to 5 year repayment plan. Unlike Chapter 7, you keep all of your property — including assets above exemption limits. It is best suited for homeowners who are behind on mortgage payments or people with significant assets they want to protect.
Alternatives to Bankruptcy
Bankruptcy is not the right solution for everyone. Depending on your situation, the following options may provide debt relief without the long-term credit impact of a bankruptcy filing:
- Debt consolidation — Combine multiple debts into a single lower-interest loan
- Debt settlement — Negotiate lump-sum payoffs directly with creditors
- Credit counseling / Debt Management Plan — Work with a nonprofit agency to lower interest rates and create a structured payoff plan
- Debt validation — Request verification of debts from collectors before paying
About This Site
American Debt Guide is independently operated and not affiliated with any law firm, debt relief company, or financial institution. Our content is researched using official government sources including the U.S. Trustee Program, the U.S. Courts bankruptcy resources, and state-specific statutory codes.
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