How to File Chapter 7 Bankruptcy

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Categories: Money | How Tos

  • Do you need help filing for Chapter 7 bankruptcy? Chapter 7 bankruptcy can be used to get out from under crippling debt, if you meet certain criteria. This page lays out the process of how to file chapter 7 bankruptcy.

  • Disclaimer

    The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.

  • Introduction

    Bankruptcy is a way to get a financial fresh start, but it is not without consequences. It can affect your ability to get credit for up to a decade. One of the forms of bankruptcy available to individuals is chapter 7 bankruptcy, which wipes out most debts that can't be repaid with a debtor's available assets.

  • Step 1: What is Chapter 7 Bankruptcy?

    Chapter 7 bankruptcy, sometimes called straight bankruptcy, is a form of bankruptcy protection provided for by chapter 7 of the U. S. Code. If you are eligible for chapter 7 bankruptcy, the court will require that all assets which are not exempt be used to settle your debts. Any debts that can't be repaid with the assets you have will be forgiven, with the exception of money owed to the government, student loans, and a few other specific situations.

  • Step 2: What Information is Needed for Chapter 7 Bankruptcy?

    It's important to make a total disclosure of all assets and debts when filing for bankruptcy. Attempting to conceal assets could render any bankruptcy settlement invalid, and leave you open to charges of perjury.

    1. Create two lists, one detailing all of your assets, and one list of everything you owe.
    2. The list of debts should include the name, address, and phone number of your creditors, the balance due, interest rate, and minimum monthly payment.
    3. Include all of your debts, even those which will not be covered by the bankruptcy.

  • Step 3: Where To File for Chapter 7 Bankruptcy?

    Bankruptcy cases are heard in federal courts. You can file a bankruptcy petition in the U.S. District Court that is responsible for a geographic region district where you have lived or operated a business 180 days. If you haven't been in one place for 180 cases, you should file in te region where you lived for the largest portion of the past 180 days.

  • Step 4: Chapter 7 Means Test

    In order to qualify for Chapter 7 bankruptcy, it must be established that you have insufficient income to meet your debts. If your family income is less than the median income for other families of the same size in your state, you will automatically be deemed to have satisfied the means test. This number can vary significantly by your state of residence.

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