Ask Terry Questions Bankruptcy


By Terry Savage on August 18, 2023 | Credit/Debt

My brother is in serious debt since COVid . He started a small business, never incorporated.. now really struggling. Are there any bankruptcy options where he won’t lose his home ?

Terry Says

A lot depends on his state of residence. Some states have a “homestead” exemption that could protect his house. But before doing anything, please have him call the National Foundation for Credit Counseling at 800-388-2227. That will connect him to the nearest local member agency, and they will know the state rules. You can trust them completely — and they may have other alternatives than filing bankruptcy, either under chapter 7 or 13. So please be with him when he makes that all. There are a lot of emotions involved in this process, and someone rational needs to write it all down and think clearly.



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