A fresh start. Done right.
Personal bankruptcy isn't failure. It's a federal protection — designed by Congress for moments like this. We help you use it correctly: AI prepares your filing, a real bankruptcy attorney supervises every step, and you walk into your 341 meeting prepared. Bankruptcy is federal law — the same chapters in every state. Lawma’s guided intake is free; the bankruptcy attorney you choose quotes a flat fee before any work starts.
What it's for
When the math stopped working.
Medical bills you didn't see coming. A job that ended. A divorce that took the household apart. A small business that didn't make it. A credit card balance that compounded faster than the paycheck. A storm or a fire that wasn't covered the way you thought.
Personal bankruptcy was written into federal law for exactly this — for honest people whose math stopped working for reasons they didn't cause. The protection is real: the automatic stay halts collection calls, lawsuits, and wage garnishments the moment your petition is filed. Most filers come out the other side with a clean slate and a path forward.
The shame is cultural; the law is on your side. We help you use it.
The two main paths
Chapter 7 or Chapter 13.
Most personal bankruptcies fall into one of two chapters of the federal Bankruptcy Code. We help you figure out which one fits — based on your income, your assets, and what you need to keep.
Chapter 7 — Liquidation (the “clean slate”)
The most common form. Unsecured debts — credit cards, medical bills, personal loans — are discharged (legally wiped out). Most filers keep their car, retirement accounts, household goods, and the equity in their home under state and federal exemption rules.
- Takes ~4–6 months from filing to discharge.
- Income must pass the federal Means Test.
- Stays on your credit report for 10 years (but credit often recovers faster than people expect).
- ~330,000 U.S. filings per year (2024).
Chapter 13 — Reorganization (a repayment plan)
For filers with steady income who want to catch up on a mortgage, save a home from foreclosure, or pay back what they can over time. You propose a 3–5 year repayment plan; the court approves it; you make plan payments and eligible debt is discharged at the end.
- Takes 3–5 years of plan payments before discharge.
- Lets you keep property you couldn't in Chapter 7.
- Stays on your credit report for 7 years.
- ~150,000 U.S. filings per year (2024).
Source: U.S. Courts Bankruptcy Filings Statistics, 2024. The right chapter depends on your specific income, debts, and what you want to keep — your Lawma attorney decides this with you, not for you.
How Lawma helps
AI does the paperwork. A lawyer does the lawyering.
Bankruptcy filings are paperwork-heavy and rule-bound: 23+ schedules, a Means Test calculation, a Statement of Financial Affairs, exemption elections, and a Chapter 13 plan if applicable. Errors get filings dismissed; missed deadlines can lose protections. We've built Lawma so the paperwork is done right and the attorney's hours focus on the parts only a human can do.
The guided interview gathers the facts.
Income from the last six months, every creditor and balance, vehicles, retirement accounts, the lease or mortgage, recent transfers — we ask in plain language and we're patient. Most filers finish the interview in 90 minutes spread across several sittings.
The AI assembles the filing.
Form B101 (the petition), schedules A/B (assets), C (exemptions), D (secured creditors), E/F (unsecured), G (executory contracts), H (codebtors), I (income), J (expenses), the Means Test, the Statement of Financial Affairs. All deterministically generated from your structured answers, with state-specific exemptions applied.
Your attorney reviews and signs.
Before anything is filed, a licensed bankruptcy attorney reviews the whole packet — checking the chapter choice, the Means Test, the exemption strategy, anything unusual in your circumstances. They sign the petition; they represent you at the 341 meeting; they handle creditor objections if any arise.
How pricing works
One flat fee. Everything covered.
Your lawyer charges a pre-negotiated flat fee — typically $200 to $3,500, depending on complexity. Chapter 7 personal bankruptcy falls in the upper-mid range; Chapter 13 sits at the high end. That single fee covers your attorney's work (reviewing your filing, signing the petition, the 341 meeting, any creditor objections) AND everything Lawma does (the guided interview, document assembly, case organization).
If you qualify for legal aid, your fee is waived. Permanently.That's a Lawma commitment.
| Option | What you get | Typical cost |
|---|---|---|
| Lawma — Chapter 7 | AI-prepared filing + attorney review + 341 meeting representation | $800–$1,200 flat |
| Lawma — Chapter 13 | AI-prepared filing + plan drafting + attorney confirmation hearing | $1,500–$2,500 flat |
| Traditional bankruptcy attorney | Full-service representation | $1,500–$5,000 |
| Bankruptcy “mill” firm | High-volume, low-touch Chapter 7 | ~$1,500 flat |
| Bankruptcy Petition Preparer (BPP) | Forms only, no legal advice, no attorney | $100–$200 |
| Upsolve (nonprofit, self-filed) | Chapter 7 simple cases only, no attorney | Free |
| Pro se (file it yourself) | Federal court templates; ~15–20% dismissal rate | $0 + filing fee |
The Lawma price shown is what you pay — no separate platform surcharge. Court filing fees ($338 for Chapter 7, $313 for Chapter 13) are paid directly to the federal court and are not included. Fee-waiver applications are available for filers below 150% of the federal poverty level — your Lawma attorney walks you through that if it applies. Comparable pricing from NerdWallet, Nolo, and Forbes Advisor (2024).
Start when you're ready.
The interview saves as you go. You don't have to finish it in one sitting. A licensed bankruptcy attorney will be assigned to your case before anything is filed — and nothing reaches the court without their review and signature.