My Bankruptcy Experience
My name is John, and I filed bankruptcy.
At the time, filing bankruptcy felt like admitting defeat.
Looking back, it was one of the smartest financial decisions my spouse and I have made.
My spouse and I filed Chapter 7 bankruptcy in July 2022. At the time this article was originally written, approximately a year and a half had passed since we filed, and our financial life had improved drastically.
This page documents the human side of that experience: why we filed, how we chose an attorney, what happened during the process, how we began rebuilding our credit and what I would tell my past self today.
Hundreds of Thousands of People Filed Bankruptcy in 2023
When I originally documented my experience, I wanted to show that filing bankruptcy did not make us unusual or alone. The 2023 data shown below included 418,724 total bankruptcy filings.
Chapter 7 was the most commonly filed chapter shown in the data, with 239,125 cases. Chapter 13 accounted for 173,362 cases, while Chapter 11 accounted for 5,986 cases and Chapter 12 accounted for 147 cases.
Source: Administrative Office of the U.S. Courts . These figures are presented as historical context and are not current bankruptcy filing totals.
Bankruptcy may not be someone’s first choice, but it can provide meaningful relief and an opportunity to reorganize a difficult financial life. For us, it created an opportunity to stop falling further behind and begin rebuilding.
My Bankruptcy Experience at a Glance
These are the central facts behind my experience. The detailed story appears throughout the rest of this page and in the linked series.
| Detail | My Experience |
|---|---|
| Bankruptcy chapter | Chapter 7 |
| When we filed | July 2022 |
| Who filed | My spouse and I |
| How long we considered it | We went back and forth for years and had seriously considered filing as early as 2019. |
| Why we ultimately filed | Our bills exceeded our available income, and the alternatives we explored did not provide sustainable long-term relief. |
| What we tried first | We briefly entered a debt settlement program but determined that it would not give us the relief we needed. |
| Important long-term goals | Starting a family, buying a home and creating a more stable financial foundation. |
| How many attorneys I interviewed | Four bankruptcy attorneys |
| One of my biggest fears | That bankruptcy would permanently ruin our credit and prevent us from moving forward. |
| What happened afterward | We began rebuilding after discharge. Approximately one year later, my credit score was over 700 and we had rented an apartment. |
| Do I regret filing? | No. I regret allowing fear and other people’s opinions to delay the decision. |
Why I Filed Bankruptcy
My spouse and I did not wake up one morning and say:
“Do you know what would be fun?”
“What?”
“If we filed for bankruptcy!”
It happened quite the opposite way. We had gone back and forth for years about whether we should file. Ultimately, it came down to a simple but difficult reality: we had more bills than we had income.
We even briefly started a debt settlement program. However, after looking at the required payments and our broader circumstances, we did not believe that it would give us the relief we needed or remain sustainable over the long term.
We considered our long-term goals, including starting a family and buying a house. We came to the conclusion that Chapter 7 bankruptcy could provide the reset we needed to begin getting back on our feet.
You can read the complete story in What Drove My Decision to File Bankruptcy .
Finding My Bankruptcy Attorney
I would hands down say that finding the right attorney was one of the most important parts of the bankruptcy process. You want to feel comfortable with your attorney and confident that you can ask questions without being judged.
I personally interviewed four bankruptcy attorneys before finding the one who clicked with us. The other three attorneys were not necessarily bad attorneys. I simply did not feel that I would be comfortable asking them difficult or personal questions about our situation.
Questions I Asked Bankruptcy Attorneys
These questions helped me compare more than just the advertised fee:
- What are your total attorney fees?
- Do you offer payment plans?
- Based on my information, might I qualify for Chapter 7?
- What could affect my ability to keep my car or other property?
- What does the filing-to-discharge process look like?
- Which services are included in your quoted fee?
- Will I need to prepare most of the paperwork myself?
- Are the required bankruptcy courses included in the fee?
- Who will answer my questions after I hire the firm?
- How quickly does your office generally respond?
- What should I know about buying a car after bankruptcy?
- What should I know about seeking a mortgage after bankruptcy?
Mortgage and vehicle eligibility can depend on the lender, loan program, underwriting requirements, discharge date and the borrower’s post-bankruptcy finances. I would ask an attorney about the legal process and a qualified lender about the lending requirements that apply when you are ready.
The attorney works for you—not the other way around. The relationship needs to be a good fit for you.
Some attorneys gave us large packets of information to complete before we felt comfortable moving forward. We were already overwhelmed, and those packets sat there collecting dust.
We knew we had found the right attorney during the initial phone call. She was thoughtful and helpful. She went above and beyond to ease our anxiety and help us understand the decision.
Her team reflected the same approach. When we called, they greeted us by name. They gave us periodic check-ins, and I felt that the firm genuinely had our best interests at heart.
Read the complete account in How I Knew I Had a Great Bankruptcy Attorney . You can also read how I compared attorney fees, reviews and other selection factors .
Rebuilding Credit After Bankruptcy
Before filing bankruptcy, I thought I would be blacklisted from credit for the next seven to ten years. I can personally tell you that this was not my experience.
When I talk with people about bankruptcy, one of the most common concerns I hear is that they want to buy a home but do not know when they will be eligible. Bankruptcy can affect mortgage eligibility, but the applicable waiting period varies by loan program and circumstances. A lender can explain the current underwriting rules that apply to a particular borrower.
My spouse and I were eager to start rebuilding once our bankruptcy was discharged. We had already researched secured cards that we wanted to consider.
We each obtained a secured credit card and added the other spouse as an authorized user. In our circumstances, that meant each of us had two reported tradelines while each person had applied for only one card.
Both security deposits were eventually refunded, and the credit limits increased around months six or seven.
After discharge, we received many credit offers. Some came with unfavorable terms. It was important to read the fine print because certain cards included annual fees, monthly fees and additional authorized-user fees. Those charges could consume part of the available credit before the card was even used.
This was our personal approach—not a universal credit-rebuilding formula. The appropriate strategy can differ based on a person’s budget, credit reports and financial goals.
Read more about how I began rebuilding my credit after Chapter 7 , how I reached a credit score over 700 and rented an apartment , and the four steps I used to set myself up for success after discharge .
Advice to My Past Self
I put off filing bankruptcy because I was worried about what other people would think of me. I allowed other people’s opinions to get into my head, and that ultimately did more harm than good.
If I had filed when I first seriously began looking into bankruptcy in 2019, I might have been further along in rebuilding my credit and pursuing our financial goals. I am not unhappy with where I am now, but I recognize how much time fear cost me.
I do not regret filing bankruptcy.
I still believe it was one of the smartest decisions we made. If I could go back, I would tell myself to look at the facts, learn how bankruptcy would apply to my circumstances and stop relying on opinions from people who had never been through the process.
Every financial situation is different. Getting out of debt is not a one-size-fits-all process, and bankruptcy is not the best option for every person. But fear and stigma should not replace accurate information.
Read the four things I wish I had known before filing and my final reflection on why I appreciated bankruptcy but never want to file again .
What I Feared vs. What Actually Happened
This table summarizes the emotional and practical progression of my experience. Each row links to the detailed first-person story.
| Stage | What I Feared | What Actually Happened | Full Story |
|---|---|---|---|
| Deciding to file | I worried that bankruptcy meant I had failed and might destroy our future. | Waiting did not solve the financial problem. Filing became a practical way to address it and work toward our long-term goals. | Why I filed |
| Choosing an attorney | I thought I primarily needed to find the least expensive attorney. | Price mattered, but trust, empathy, responsiveness and clear communication became equally important. | Finding my attorney |
| Preparing the case | I imagined an impossible legal maze and worried that I would make a damaging mistake. | Gathering and confronting the financial information was difficult, but the process was more structured than I expected. | Hardest parts |
| 341 meeting | I pictured something similar to a trial or aggressive interrogation. | The anticipation was far more stressful than the actual meeting, which was relatively brief and straightforward in my case. | My 341 meeting |
| Rebuilding credit | I thought I would be unable to access useful credit for seven to ten years. | We started carefully rebuilding after discharge, and my score eventually exceeded 700. | Credit rebuilding |
| Planning after discharge | I worried that I would not know how to make the fresh start last. | We focused on rebuilding gradually, reviewing credit offers carefully and creating healthier financial habits. | Success after discharge |
| Renting afterward | I worried that landlords would automatically reject us. | We were able to rent an apartment while continuing to strengthen our post-bankruptcy financial profile. | One year later |
| Looking back | I worried that I would regret filing for the rest of my life. | I do not regret filing. I regret waiting so long to evaluate the facts instead of reacting to stigma and fear. | Final reflection |
Not Sure Which Debt Option Fits Your Situation?
Bankruptcy is not the only way to address debt. Depending on your income, debt, assets and goals, you may also want to compare debt settlement, nonprofit credit counseling, debt payoff planning and other alternatives.
Ascend’s free tools can help you compare potential options and estimated payments. You may also request a free consultation with a bankruptcy attorney who serves your area.
John’s story reflects his personal experience and should not be interpreted as a prediction of another person’s bankruptcy outcome. Eligibility, property treatment, credit recovery and post-bankruptcy borrowing depend on individual circumstances and applicable requirements.
Yes
No