How does bankruptcy work in my state?

While bankruptcy is federal law, each state sets its own exemptions that determine what property you can keep. Some states also allow you to choose between state and federal exemptions. Your state's median income determines Chapter 7 eligibility through the means test.

What are my state's bankruptcy exemptions?

Every state has its own set of exemptions covering your home, car, personal property, and retirement accounts. Some states are very generous with homestead exemptions, while others offer minimal protection. Check your specific state's exemption amounts before filing.

Do I have to file bankruptcy in the state where I live?

You file in the federal district where you have lived for the greater portion of the last 180 days. If you recently moved, you may need to use your previous state's exemptions for up to two years after the move under the hanging paragraph rule.

Does my state allow federal bankruptcy exemptions?

About 17 states allow debtors to choose between state and federal exemptions. The remaining states require you to use state exemptions only. If you have the choice, compare both sets to determine which protects more of your property.

What should I know before filing bankruptcy?

Bankruptcy is a legal process that can eliminate or restructure debts, but it has lasting effects on your credit and financial life. Before filing, understand which debts can be discharged, what property you can keep through exemptions, and which chapter fits your situation.

Emergency Bankruptcy Filing to Stop Garnishment

What Is an Emergency Filing?

If your next paycheck is about to be garnished, you can file a "bare petition" - just the petition form (Official Form 101) without the full schedules. This triggers the automatic stay immediately, stopping all garnishments.

The 14-Day Deadline

After filing a bare petition, you have 14 days to complete and file the remaining documents: schedules, statement of financial affairs, means test, and credit counseling certificate. If you miss this deadline, the court will dismiss your case.

Steps to Emergency File

Complete Official Form 101 (the petition). Gather your government ID and Social Security proof. Go to the bankruptcy court clerk's office or file electronically. Pay the filing fee or file a fee waiver request. Immediately notify your employer and the garnishing creditor of the filing. Complete all remaining documents within 14 days.

Learn about filing requirements

Filing Guide

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