Resources
FAQs*
* This is for general information only and not legal advice
​
BANKRUPTCY FAQ's
Q: What is the difference between Chapter 7 and Chapter 13 bankruptcy in Alaska?
A: Chapter 7 (liquidation) wipes out most unsecured debts in 4–6 months if you qualify, with no repayment plan. Chapter 13 (reorganization) lets you keep all your property while repaying debts over 3–5 years through a court-approved plan. Most Alaskans choose Chapter 7 if they have low income and little non-exempt assets.
Q. How do I qualify for Chapter 7 bankruptcy in Alaska?
A: You must pass the means test (compare your average monthly income over the last 6 months to Alaska’s median income for your household size). Alaska’s higher cost of living often means higher income limits than many states. You also must complete credit counseling. If you fail the means test, Chapter 13 may still be an option.
​
Q: What property can I keep if I file bankruptcy in Alaska? Alaska allows you to choose either state exemptions or federal exemptions (but not both).
A: Common protections include equity in your home (up to $72,900 under state law), household goods, one vehicle, tools of trade, retirement accounts, and your Permanent Fund Dividend (PFD). Most filers keep everything they need using the wildcard exemption.
​
Q: How long does the bankruptcy process take in Alaska?
A: A typical no-asset Chapter 7 case takes about 120 days from filing to discharge. Chapter 13 cases last 3–5 years because of the repayment plan. The 341 Meeting of Creditors usually occurs 20–40 days after filing.
​
Q: How much does it cost to file bankruptcy in Alaska? The federal filing fee is $338 for Chapter 7 and $313 for Chapter 13 (as of 2026).
A: Attorney fees typically average $1,800–$2,500 for Chapter 7 and $3,500+ for Chapter 13, depending on complexity and location (higher in rural areas). Credit counseling and debtor education courses add $20–$50 each.
​
Q: Will filing bankruptcy stop foreclosure or wage garnishment in Alaska?
A: Yes — the automatic stay goes into effect immediately upon filing and stops most collection actions, including foreclosures, garnishments, lawsuits, and creditor calls. However, the stay is temporary for foreclosure; you may need Chapter 13 to catch up on mortgage payments.
​
Q: What debts can be discharged in bankruptcy in Alaska? A: Most unsecured debts (credit cards, medical bills, personal loans, payday loans) are discharged. Certain debts survive: recent taxes, student loans, child support, alimony, and debts from fraud or DUI, although there are exceptions to this which should be discussed with an attorney. Alaska follows the same federal discharge rules as the rest of the country.
​
Q: How does bankruptcy affect my credit in Alaska?
A: A Chapter 7 bankruptcy stays on your credit report for 10 years; Chapter 13 for 7 years. Many people see their score improve within 1–2 years as they rebuild with new credit. Alaska creditors cannot discriminate against you solely because you filed bankruptcy.
​
Q: Do I need an attorney to file bankruptcy in Alaska?
A: No — you can file “pro se” (without a lawyer), but it is strongly discouraged because of complex paperwork, the means test, and exemption choices. Most people hire an attorney to avoid costly mistakes.
​
Q: Are there alternatives to bankruptcy in Alaska?
A: Yes — debt settlement, debt management plans through a nonprofit credit counselor, or negotiating directly with creditors. Alaska’s high cost of living and unique income sources (PFD, fishing permits) sometimes allow creative solutions. An experienced attorney can help you explore options before filing.