Bankruptcy Guide
Chapter 7 Bankruptcy: The Fresh Start
Chapter 7 is the most common form of personal bankruptcy. It discharges most unsecured debts in 3–5 months. Here's what you need to know before deciding if it's right for you.
Quick facts
- Timeline
- 3–5 months
- Filing fee
- $338
- Discharge rate (with attorney)
- ~94%
- Pro se discharge rate
- <50%
Who Qualifies for Chapter 7?
To file Chapter 7, you must pass the means test — a calculation that compares your income to your state's median income. If your income is below the median, you automatically pass. If it's above, a more detailed calculation is required. You must also complete an approved credit counseling course within 180 days before filing.
Corporations and partnerships generally cannot file Chapter 7 as individuals. Only individuals (and sole proprietors in some cases) can receive a Chapter 7 discharge.
Chapter 7 Timeline
- 01
Credit counseling
Required before filing. Takes ~1 hour online or by phone. Must be from an approved provider.
- 02
File the petition
Submit your petition, schedules, means test, and filing fee ($338) to your federal bankruptcy court.
- 03
Automatic stay begins
The moment you file, most creditor actions — calls, garnishments, foreclosures — must stop.
- 04
341 Meeting of Creditors
A short meeting (usually 5–10 minutes) with the trustee. Creditors may attend but rarely do.
- 05
Discharge
If no objections, most unsecured debts are discharged. Typically 60–90 days after the 341 meeting.
What Debts Are Discharged?
Generally dischargeable
- Credit card debt
- Medical bills
- Personal loans
- Utility bills
- Lease obligations (in some cases)
- Some older tax debt
Generally NOT dischargeable
- Most student loans
- Child support and alimony
- Recent tax debt (generally last 3 years)
- Debts from fraud
- Criminal fines and restitution
- Debts from DUI injuries
“The biggest risk in a pro se Chapter 7 case is not the risk of dismissal, but the risk of losing assets that could have otherwise been disclosed and protected.”