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Last reviewed: 3 October 2026

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Debt relief: where to start if you cannot keep up with your debts

Start by finding out exactly what you owe, and to whom. The CFPB says a debt collector must tell you the creditor, the amount owed and how to dispute the debt.[1] If you are sued, the FTC says to respond by the date in the court papers.[2] This hub covers those first steps, then maps our guides on counseling, settlement, consolidation, bankruptcy and debts with their own rules.

First steps, as the CFPB and FTC describe them

  1. Find out what the debt is. The CFPB says a collector is required to give you the name of the creditor, the amount owed and how to dispute the debt. If it will not or cannot, the CFPB says it could be a scam.[1]
  2. Do not ignore a collector. The CFPB says ignoring or avoiding a collector is unlikely to make it stop contacting you, and that if you believe you do not owe the debt, you should tell the collector.[1] It also says a collector can help you understand whether the debt is yours and what your options are, even if you cannot pay at the time.[1]
  3. Do not ignore a lawsuit. The FTC says to respond by the date in the court papers, personally or through an attorney.[2]
  4. Know that you choose where a payment goes. The FTC says that if a collector is trying to collect more than one debt from you, it must apply a payment to the debt you choose. It cannot apply a payment to a debt you say you do not owe.[2]
  5. Counselors and settlement companies. The CFPB lists "You are wondering whether to use a credit counselor or a debt settlement company" among the common issues on its debt collection page.[1] The guides below explain each route. They do not say which one suits you.

This is general information, not legal advice. The sources describe federal law. Many states add their own rules.[2]

Jump to a topic

Counseling and repayment plans

Nonprofit credit counseling and DMPsWhat accreditation requires, what it costs and what it does to credit.How to verify a credit counseling agencyPublic checks to run before you hand over any information.Bankruptcy credit counseling and debtor educationThe two courses tied to a bankruptcy case.Asking a card issuer for a hardship planWhat the CFPB and FTC say about asking your card company for a hardship or repayment plan, and who to ask for help.

Settlement, consolidation and credit repair

Credit repair vs. debt settlement vs. debt consolidationThree different products, side by side.What to expect from debt settlementThe account, the credit effects, the tax bill and the risks.The attorney model in debt settlementHow a state licensing exemption is used.State licensing of debt settlement companiesRules that differ from state to state.Debt settlement cost worksheetWork through the numbers on your own accounts.Debt consolidation loansSecured and unsecured loans, and how to verify the lender.Canceled debt, Form 1099-C and taxesWhen settled or forgiven debt can be taxable.Quitting a debt settlement programWhat the FTC rule says about getting your funds back.Debt relief options comparedPaying on your own, credit counseling, a consolidation loan, debt settlement and bankruptcy side by side, as the CFPB, FTC and federal courts describe them.Balance transfer cards: what to knowWhat the CFPB says to know about promotional rates, transfer fees, grace periods and late payments, beside two other ways to consolidate.

Bankruptcy

Chapter 13 bankruptcy, explainedWho can file, the debt limits adjusted in 2025, the steps from petition to confirmation, how the plan and discharge work, and what happens if payments stop.Co-signers and bankruptcy, explainedWhy a discharge does not release the other person on the debt, how the Chapter 13 co-debtor stay works for consumer debts, and when it ends or can be lifted.The 341 meeting of creditors, explainedWho runs the 341 meeting, when it is held in Chapter 7 and 13, what to send the trustee beforehand, who may ask questions, and what the trustee must cover.Bankruptcy exemptions, explainedThe federal exemption list with the amounts adjusted in 2025, how state exemptions fit in, the 730-day domicile rule, and the caps on homestead and IRA value.The Chapter 7 means test, explainedThe two-step test in the Bankruptcy Code: the state-median step, the expense calculation, the dollar thresholds in force since April 2025, and what the court can do.The automatic stay, explainedWhat 11 U.S.C. 362 stops when a petition is filed, the exceptions, how long the stay lasts, repeat-filer limits, and the remedy for violations.Debts a Chapter 7 discharge cannot eraseThe main debts 11 U.S.C. 523 says a Chapter 7 discharge does not erase, which ones a creditor must go to court over, and the dollar presumptions adjusted in 2025.Chapter 7 vs. Chapter 13 bankruptcyThe two most common consumer chapters, side by side.Reaffirmation agreementsWhat the agreement is and the court's role.Credit after bankruptcyThe 10-year reporting limit, its exceptions and a checklist for after your case.

Debts that follow their own rules

Medical, auto and other consumer debtThe hub for debts with their own rules.Tax debt relief companiesWhat the IRS offers directly and what third parties charge.IRS payment plan vs. offer in compromiseHow the IRS describes each.Student loan debt-relief companiesWhat is free to file directly.Federal student loan defaultWhat default means and the consequences.Can't afford your car paymentOptions described before a repossession.Payday loansHow they work and the rules around them.Timeshare exit companiesThe pattern regulators keep finding.Income-driven repayment plans comparedThe federal income-driven repayment plans side by side: who can enroll, how the payment is set, interest and forgiveness.

Collectors, lawsuits and what they can reach

Debt collection: where to startFirst steps when a collector contacts you.Sued for a debt: what happensFrom summons to judgment.Are benefits protected from collectors?Social Security, SSI and VA benefits.Judgment-proof status and exemptionsWhat a creditor can and cannot reach.Paying a collection: report vs. scoreWhat federal law, the CFPB and the FTC say about a paid collection on your report, and what they do not say about your score.If you stop paying a credit cardWhat the FTC and CFPB say happens, in order, from a missed payment to charge-off, collectors and a lawsuit.Can a creditor freeze your bank account?When a creditor can freeze or garnish money in a bank account, what federal and state law protect, and what to do if funds are frozen.Free legal help for debt problemsPrograms USAGov and the CFPB name for free or low-cost legal help, and how to check and prepare for a lawyer.

Check a company before you pay anyone

Warning signs before you signThings a legitimate service will not do.The advance-fee ruleWhy upfront fees are a red flag.How to check a credit or debt companyFree public checks, organized by our Standard.How to verify a debt settlement companyThe FTC fee rule, complaints, cases and state licensing.Stopping automatic paymentsHow to stop debits to a credit or debt company.Where to file a complaintWhich agency takes which problem.

In Canada

Checking a Canadian insolvency trusteeWhat the OSB says about who may administer a consumer proposal or bankruptcy, what the Bankruptcy and Insolvency Act says about trustees, how to look one up, what lapses a licence, and the OSB's listed warning signs.Insolvency counselling in CanadaThe two counselling sessions the Bankruptcy and Insolvency Act requires, the OSB program's two stages, who may provide them, who pays, and what happens if you skip them.Credit counselling in CanadaVoluntary accreditation, and the provincial licensing that targets debt settlement.Bankruptcy and consumer proposals in CanadaThe two formal routes.Debt settlement licensing in CanadaProvincial rules.

How to verify this yourself

  1. Read the CFPB's debt collection page, including its key terms and its list of common issues.[1]
  2. Read the FTC's Debt Collection FAQs.[2]
  3. Before you pay any company, run the free public checks on our company-check hub. Our Standard lists the points we check for credit repair and debt settlement companies, and the Register shows how those checks are dated and re-checked.

What this hub does not cover

It does not say which route suits your debts, whether you owe a particular debt, or what a company will charge. It does not recommend any option or company. Each guide explains one topic from its own sources. Rules differ by state and by type of debt.

Your next step

Write down each debt, who says you owe it and any court date. Then open the section above that matches your biggest question. If a collector has contacted you, start with debt collection: where to start.

When we will update this page

We revisit it when we add a debt relief guide or when the CFPB or FTC changes these pages. Sources last read 2 October 2026.

What you can do next

References

  1. Consumer Financial Protection Bureau, "Debt collection", consumerfinance.gov (page last modified 25 September 2026), read 2 October 2026.
  2. Federal Trade Commission, "Debt Collection FAQs," Consumer Advice (March 2023), consumer.ftc.gov, read 2 October 2026.

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