The Questions We’re Hearing Most Often About Bankruptcy in 2026
If you’re struggling with debt, you’re probably spending a lot of time searching the internet before you ever call a lawyer.
That’s completely normal.
In fact, most of the people who come to our office tell us they spent weeks researching bankruptcy before finally picking up the phone. They wanted to know what would happen to their home, their car, their credit, and whether bankruptcy was really their only option.
Here are the questions we’re hearing most often—and the answers we give our clients every day.
“Will I lose my house?”
This is almost always the first question.
The good news is that filing bankruptcy does not automatically mean losing your home. Many of our clients keep their homes through either Chapter 7 or Chapter 13 bankruptcy.
Whether you can keep your home depends on several factors, including the equity you have, whether you’re behind on your mortgage, and your overall financial situation. That’s why it’s important to talk with an attorney before assuming you have no options.
“Can I keep my car?”
In most cases, yes.
If you’re making your payments—or if you’re able to catch up through a Chapter 13 repayment plan—you can often keep your vehicle.
If your car has already been repossessed or you’re worried that it will be soon, don’t wait. The sooner you seek advice, the more options you may have.
“Can bankruptcy get rid of my credit card debt?”
For most people, that’s exactly what bankruptcy is designed to do.
Credit card balances, medical bills, personal loans, old utility bills, and many collection accounts can often be eliminated through a Chapter 7 bankruptcy.
“What about IRS taxes?”
Many people are surprised to learn that some income tax debt can be discharged in bankruptcy.
Not every tax qualifies, and the rules are very specific, but if you’ve been told that tax debt can never go away, that’s simply not always true.
“I have a good job. Do I make too much money to file?”
Not necessarily.
We hear this almost every day.
Your income is only one piece of the puzzle. Your household size, monthly expenses, secured debts, and many other factors all matter.
We’ve represented clients with incomes that they assumed were “too high,” only to discover they still qualified for Chapter 7 or had an excellent Chapter 13 option.
“Will bankruptcy ruin my credit forever?”
No.
If you’re already behind on your bills, your credit has probably already taken a hit.
For many people, bankruptcy becomes the turning point. Instead of falling further behind each month, they’re able to eliminate debt and begin rebuilding their financial future.
“Will everyone know I filed bankruptcy?”
Probably not.
While bankruptcy filings are technically public records, most people never search court records.
Your neighbors won’t receive a notice. Your friends won’t be notified. In most cases, the only people who know are the people you choose to tell.
“Can bankruptcy stop a lawsuit or wage garnishment?”
Usually, yes.
Once a bankruptcy case is filed, federal law generally stops most collection activity immediately. That includes:
- Wage garnishments
- Collection lawsuits
- Bank levies
- Collection calls
- Many foreclosures
- Many vehicle repossessions
Timing matters. Waiting until after a judgment or garnishment has begun can limit your options.
“Should I wait a little longer before talking to an attorney?”
This is the one question we wish people wouldn’t ask.
Far too often, we meet with someone after they’ve emptied their savings, borrowed from family members, cashed out retirement accounts, or struggled for months trying to keep up with impossible debt.
The earlier you learn about your options, the more choices you’ll usually have.
Talking with a bankruptcy attorney doesn’t mean you’ve decided to file. It simply gives you accurate information so you can make the best decision for yourself and your family.
You Don’t Have to Figure This Out Alone
Financial problems can feel overwhelming, but you don’t have to navigate them by yourself.
Every situation is different. What worked for a friend—or what you read in an online forum—may not apply to your circumstances.
A consultation allows us to look at your complete financial picture, answer your questions, and help you understand all of your available options. Sometimes bankruptcy is the right answer. Sometimes it isn’t.
The important thing is getting reliable advice before making decisions that could affect your financial future.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.