Will bankruptcy ruin my credit?   Bankruptcy can have an adverse effect on your credit, but it may be no worse than the effect of ignoring your debts.  A bankruptcy will remain on your credit report for 10 years.  However, it is not clear what effect that may have in the long run and many people can begin rebuilding credit shortly after bankruptcy. 

Can I eliminate all of my debt through bankruptcy?  The simple answer is no.  For the most part, credit card debt is generally subject to discharge, but in some instances it may not be.  For example, credit that was issued based on fraudulent information by the debtor will not be discharged.  Other debt, such as child support, spousal maintenance, and outstanding taxes will likewise not be discharged. 

Is there a minimum amount of debt required to file for bankruptcy?  No.  If your debts are not very big, or your financial stress is only temporary, you may consider other options.  It might be better for you to negotiate directly with creditors to try to restructure your repayment terms. 

Will I lose all of my property if I file for bankruptcy? No.  Because of the system of exemptions, you may be able to keep many, if not all, of your possessions, including your car (up to a specified value), clothing, jewelry, and a certain amount of equity in your home.  You will not automatically lose everything.

If I am contemplating filing bankruptcy, do I have to stop using my credit cards?  It's best to stop using your credit cards as soon as you are thinking about filing for bankruptcy protection.  The court can choose not to discharge debt for purchases and cash advances made within a specified period before bankruptcy.