Chapter 7 Bankruptcy - Complete Self-Help Guide

What is Chapter 7 Bankruptcy?

• Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows individuals to discharge most unsecured debts in approximately 3-4 months.
• This option is ideal for people with limited income who cannot afford to pay back their debts.
• Chapter 7 provides a fresh financial start by eliminating credit card debt, medical bills, and other qualifying unsecured debts.

Chapter 7 Eligibility Requirements

• Must pass the Means Test to qualify for Chapter 7 filing
• Income must be below median income for your state and household size
• Cannot have filed Chapter 7 in the past 8 years
• Must complete credit counseling within 180 days before filing
• Cannot have certain types of recent luxury purchases or cash advances

Chapter 7 Process Timeline

• Month 1: File petition and automatic stay begins
• Month 2: Meeting of Creditors (341 Meeting)
• Month 3: Deadline for objections and final financial course
• Month 4: Discharge granted and case closed
• Total timeline: Approximately 3-4 months from filing to discharge

Chapter 7 Benefits

• Fast debt relief in just 3-4 months
• Eliminate credit card debt, medical bills, and personal loans
• Keep exempt property including home equity and retirement accounts
• Stop wage garnishments and collection actions immediately
• Fresh start for rebuilding credit and financial future