What Are the Steps Involved in Filing for Chapter 7 Bankruptcy?
Filing for Chapter 7 bankruptcy involves several important steps. Being prepared and organized can help ensure the process goes smoothly and without unnecessary delays.
Step 1: Gather Required Financial Documents
Before filing, you’ll need to collect key financial information, including:
Federal tax returns from the past two years
Proof of income and a detailed list of monthly expenses
Bank statements and financial account records
Documentation of child support or alimony, if applicable
Step 2: Document All Sources of Income
You must disclose all income from every source received during the previous seven months. This includes:
Wages or salary
Unemployment benefits
Disability or Social Security income
Self-employment income and gig work
Any other regular or irregular income
Full and accurate income disclosure is required to complete the means test and determine eligibility for Chapter 7 bankruptcy.
Step 3: Complete Credit Counseling
Before filing, you must complete a court-approved credit counseling course and obtain a certificate of completion.
Step 4: File the Bankruptcy Petition
Once all documents are prepared, your bankruptcy petition is filed with the appropriate federal bankruptcy court. Filing triggers an automatic stay, which immediately stops creditor collection efforts.
Step 5: Attend the Meeting of Creditors
After filing, you’ll attend a brief hearing called the 341 Meeting of Creditors, where a bankruptcy trustee reviews your case and asks basic questions about your finances.
Step 6: Complete the Debtor Education Course
After the 341 meeting, you must complete a second required course in financial management before your debts can be discharged.
Step 7: Receive Your Discharge
If there are no objections, most Chapter 7 cases conclude within three to four months, and eligible debts are permanently discharged.
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