Prior to the filing of the bankruptcy, the creditor can garnish your wages, garnish your bank accounts and put a lien against your home. The bankruptcy will stop the garnishments. It may be possible to get rid of the lien in bankruptcy by filing a Motion to Avoid the Judgment Lien.

In a Chapter 7 bankruptcy, you receive your discharge approximately 4 to 5 months after your bankruptcy is filed. In a Chapter 13 bankruptcy, you will receive your discharge after your Chapter 13 plan ends–3 to 5 years from the date of the filing of the bankruptcy.

In a Chapter 7 bankruptcy, the bankruptcy stays on the credit report for a period of 10 years. In a Chapter 13 bankruptcy, it stays on the credit report for 7 years. However, realistically speaking, what’s important in the eyes of a creditor is the credit score and this should begin to go back up because there is no more negative credit reporting.

There are a number of exemptions provided by law, which protect you from losing your assets. Most people can keep their homes, cars, furniture, appliances and personal belongings. There are exemptions for the tools one uses to earn a living. There are exemptions for cash value in life insurance policies and annuities, pensions, IRA, 401(k) and other such retirement accounts.