My friend (true story) is in a bunch of debt, around $20,000, and no way in hell is he able to pay it back. He works with me at a part time job and barely brings home $1100/monthly gross and his minimum payments are around $450/month. If he files for bankruptcy, would he have to pay back his debt back? I think all of is debt are credit cards, so no government, auto or home loans. I helped him searched a little, but I don't want to give him bad advice and f**k him over because I hardly know how car payments work. On wiki, it seems like he will fall under Chapter 7 or 13. According to the FTC website, if he files for Chapter 7, he needs mandatory advising before and after the filing in addition to passing a means test. If he is successful in filing Chapter 7 he doesnt owe anything. However, if he does not pass the means test, he will fall under Chapter 13 which they construct a plan for him to pay back his debt. Lastly, will any of this affect his chances of going back to school? I dont remember if bankruptcy affects government fin. aid, but surely private loans. If any of this is wrong, please correct and advise. He went from an income of $45k/yr to $15k/yr and I honestly told him I dont think he can pay back his debt in his situation. Thanks a bunch fellas.