This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Filing for Chapter 7 bankruptcy can help eliminate many types of debt, such as credit card debt and medical bills, through a bankruptcy discharge. This process allows you to get a fresh financial start by wiping out unsecured debts. Understand how the process works and what is required to file.
Fleysher Law Bankruptcy & Debt Attorneys helps guide you through the Chapter 7 bankruptcy process. We’ll help you understand the eligibility requirements, gather the relevant documents, and ensure that your bankruptcy petition is filed correctly.
Our team is here to help you achieve the debt relief you need and answer any questions you have throughout the process. Whether you're facing secured debts like mortgages or unsecured debts like personal loans, we’ll work with you to make the filing process as smooth as possible.
To qualify for Chapter 7 bankruptcy, you must meet certain eligibility requirements. Chapter 7 is designed for individuals who are struggling with unsecured debts like medical bills or credit card debt and don’t have sufficient income to repay them.
One of the key factors in determining eligibility is your household income. If your income is lower than the median for your state, you may qualify for Chapter 7 bankruptcy. If your income is higher, you must pass the Chapter 7 means test to determine whether you can afford to pay back a portion of your unsecured debts.
A bankruptcy attorney can help you understand these requirements and guide you through the eligibility process. If you meet the requirements, you can move forward with filing a bankruptcy petition and begin working toward a bankruptcy discharge of your unsecured debts.
The Chapter 7 means test is a critical part of determining whether you qualify for Chapter 7 bankruptcy. The test compares your household income to the median income for your state. If your income is below the median, you automatically qualify. However, if your income is higher, the test looks at your monthly expenses to see if you have enough disposable income to repay any of your unsecured debts.
If your disposable income is low, you can file for Chapter 7 bankruptcy, and most of your unsecured debts will be discharged. If you pass the means test, you are eligible to proceed with your bankruptcy petition. If you fail, you may be directed to file for Chapter 13 bankruptcy, which involves a repayment plan over 3 to 5 years.
Consulting with a bankruptcy attorney can help you understand how the means test applies to your situation.
Here are the other key requirements to file for Chapter 7 bankruptcy:
A bankruptcy attorney can help ensure that you meet all eligibility requirements and guide you through the process.
Filing for Chapter 7 bankruptcy involves several key steps. Each step is vital to ensure that your bankruptcy petition is properly filed and your debts are discharged.
Here's the process of filing for Chapter 7 bankruptcy and what you need to do to get started:
The first step in filing for Chapter 7 bankruptcy is to gather all your financial documents. These documents will help provide a complete picture of your financial situation to the bankruptcy court. You will need to provide information on:
These documents are crucial for filling out the required bankruptcy forms and creating your debt repayment plan if needed.
Before you can file for Chapter 7 bankruptcy, you must complete a credit counseling course from an approved agency. This session is designed to help you understand your financial situation and explore options besides bankruptcy. The course typically lasts about 60 to 90 minutes and can be taken online, over the phone, or in person.
The goal of credit counseling is to ensure that bankruptcy is your best option for debt relief. Once you complete the course, you will receive a certificate, which you must file with the bankruptcy court as part of your bankruptcy petition. Without this certificate, your bankruptcy filing could be delayed or rejected.
Working with a bankruptcy attorney can help you choose a reputable credit counseling agency and ensure that this step is completed correctly.
Once you’ve gathered your financial documents and completed credit counseling, the next step is to file bankruptcy forms with the bankruptcy court. These forms will include all the information about your income, debts, expenses, and assets. You’ll also need to include a list of creditors you owe money to, including both secured creditors (like mortgage lenders or car loan companies) and unsecured creditors (like credit card companies).
The bankruptcy forms will also require information on any prior bankruptcy filings and your financial history. Once completed, these forms must be filed with the court, and the filing fee must be paid. In some cases, you may qualify for a fee waiver or reduced fee if you meet certain income requirements.
Working with a bankruptcy attorney ensures that all forms are filled out accurately, helping avoid delays or mistakes in the process.
After you file bankruptcy, a bankruptcy trustee will be assigned to your case. The trustee is responsible for overseeing your Chapter 7 bankruptcy process. They will review your bankruptcy petition and determine if any of your assets can be liquidated to pay off your unsecured creditors.
The trustee will also help ensure that you’re following bankruptcy law and making your required monthly payments, if applicable. They will organize the 341 Meeting of Creditors, where you will meet with the trustee and any creditors who want to ask you questions about your financial situation. Cooperate with the trustee throughout the process to avoid delays and ensure your case proceeds smoothly.
A bankruptcy attorney can assist you in communicating with the trustee and ensuring that you meet all the necessary requirements for your case.
After filing for Chapter 7 bankruptcy, you’ll need to attend the 341 Meeting of Creditors. This meeting is required by law and typically takes place about a month after you file your bankruptcy petition. During this meeting, the bankruptcy trustee will ask you questions about your financial situation, including your income, assets, and debts. Creditors may also attend and ask questions, although it’s rare for them to show up.
The purpose of the meeting is to verify the information in your bankruptcy petition and ensure that everything is accurate. Be prepared, answer all questions truthfully, and bring any requested documents with you. If you miss this meeting, it could delay your bankruptcy case or even result in dismissal.
A bankruptcy attorney can help you prepare for the meeting and make sure you understand what to expect.
After the 341 Meeting of Creditors, you must complete a debtor education course. This course is required by bankruptcy law and helps you understand how to manage your finances after bankruptcy. The course typically lasts around 2 hours and can be done online or in person.
The purpose of the course is to teach you about budgeting, saving, and managing your debts moving forward. Completing the course is vital because you will not receive your bankruptcy discharge until the debtor education course is completed and the certificate of completion is filed with the bankruptcy court.
While this course may feel like an extra step, it is a vital part of the bankruptcy process and can set you on the path to financial recovery. Your bankruptcy attorney can help you find an approved course provider and make sure all steps are followed.
Once you’ve completed all the required steps in your Chapter 7 bankruptcy case, including the 341 Meeting of Creditors and the debtor education course, the bankruptcy judge will grant a bankruptcy discharge. This discharge means that most of your unsecured debts are wiped out. You will no longer be legally responsible for paying these debts, including credit card debt, medical bills, and personal loans.
The debt discharge gives you a fresh start financially. However, note that some secured debts, such as mortgage payments and car loans, are not discharged unless you surrender the property. Additionally, certain priority debts, like tax debts or child support, cannot be discharged in Chapter 7 bankruptcy.
After your debt discharge, you can begin rebuilding your credit and working toward a more stable financial future.
In Chapter 7 bankruptcy, many types of debt can be discharged. This means that you no longer have to pay them. However, some debts are not discharged, and you will still be responsible for them after your bankruptcy is complete. Below, we will explain which debts can be discharged and which ones cannot.
The following unsecured debts are typically discharged in Chapter 7 bankruptcy:
If you have unsecured debts like these, Chapter 7 may offer you the chance to get a fresh financial start.
While Chapter 7 bankruptcy can eliminate many unsecured debts, some debts cannot be discharged. These include:
Understand which debts can be eliminated and which will remain after Chapter 7.
Once you file for Chapter 7 bankruptcy, you will go through several steps toward completing your bankruptcy case. Here's what happens after you file and the key things to expect.
Filing for Chapter 7 bankruptcy will impact your credit score. Your credit report will show that you filed for bankruptcy, and it can lower your credit score. This can make it harder to get approved for loans or credit cards in the short term.
However, the effect on your credit score can lessen over time. As you start rebuilding your finances and making on-time payments, your credit score can improve. Chapter 7 bankruptcy may actually help you rebuild credit faster than continuing to struggle with high levels of debt.
After your Chapter 7 bankruptcy, you can begin working on improving your credit. Start by monitoring your credit report to make sure it is accurate and reflects your debt discharge. You can rebuild your credit by:
With time and responsible financial management, you can raise your credit score and get back on track.
One of the most common concerns during Chapter 7 bankruptcy is whether you can keep your home and car. The good news is that, in many cases, you can keep both as long as you continue to make mortgage payments and car loan payments.
If you are at risk of losing your home or car due to missed payments, Chapter 7 may not be enough to protect those assets. In that case, Chapter 13 bankruptcy may be a better option.
Before deciding to file for bankruptcy, understand the pros and cons. Chapter 7 bankruptcy can help eliminate unsecured debts, but it may not be the right choice for everyone.
Here are the advantages and disadvantages of filing.
What is personal liability in Chapter 7 bankruptcy?
Personal liability refers to the legal responsibility you have for paying certain debts. In Chapter 7 bankruptcy, most unsecured debts are discharged, meaning you are no longer personally liable for them. However, secured debts like mortgages and car loans are not discharged unless you surrender the property.
Will I lose all my property in Chapter 7 bankruptcy?
Not necessarily. While Chapter 7 bankruptcy may involve the liquidation of some debtor's assets, most people can keep exempt property like household goods, clothing, and a car. The bankruptcy code outlines which assets are exempt and which are not, so the specific assets that may be sold depend on your state’s laws.
How do I know if my bankruptcy forms are completed correctly?
File completed bankruptcy forms accurately to avoid delays in your case. These forms require details about your debtor's assets, income, and debts. Working with a bankruptcy attorney ensures that the forms are completed correctly and submitted to the bankruptcy court.
Can I keep my debtor's assets in Chapter 7 bankruptcy?
In Chapter 7 bankruptcy, you may be able to keep your exempt property, such as a primary residence or car, depending on state law. However, non-exempt debtor's assets could be sold to pay off creditors. Your bankruptcy attorney can help you understand which assets you can keep.
Does Chapter 7 bankruptcy discharge all types of debts?
No, Chapter 7 bankruptcy discharges most unsecured debts, such as credit card debt and medical bills, but it does not discharge secured debts like mortgage payments and car loans. Certain priority debts like child support and tax debts also cannot be discharged under the bankruptcy code.
If you are considering Chapter 7 bankruptcy, Fleysher Law Bankruptcy & Debt Attorneys can help. Our team of skilled bankruptcy attorneys will guide you through each step of the bankruptcy filing process. From gathering the completed bankruptcy forms to helping you understand personal liability and protecting your debtor's assets, we are here to ensure that you get the debt relief you need.
We understand that dealing with unsecured debts, secured debts, and the bankruptcy court process can be overwhelming. Our experienced attorneys are committed to providing clear and practical advice to help you get the bankruptcy discharge and debt relief that you deserve.
Contact us today to schedule a free consultation. Let us help you take the first step toward financial freedom with Chapter 7 bankruptcy.
Emil Fleysher is a South Florida attorney dedicated to helping individuals overcome financial hardships. As the founder of the Law Office of Emil Fleysher, P.A., he specializes in bankruptcy, debt settlement, foreclosure defense, and mortgage solutions.
A graduate of Nova Southeastern University Shepard Broad Law School (2009, honors), Emil has a strong commitment to consumer rights and has volunteered over 300 hours with Legal Aid of Broward County. His firm takes a personalized, client-focused approach to debt relief, ensuring individuals understand their options and regain financial stability.
For those facing overwhelming debt or foreclosure, Emil offers free consultations to explore the best solutions.
"*" indicates required fields
