How to File for Bankruptcy: Chapter 7 vs. 13, Forms, and Discharge

Filing for bankruptcy in the United States is a federal court process, and knowing how to file for bankruptcy comes down to a defined sequence of steps: complete a required credit counseling briefing, decide between Chapter 7 and Chapter 13, prepare a full financial disclosure, file the petition and pay the court fee, attend a meeting with the trustee, finish a second financial management course, and receive your discharge. A straightforward Chapter 7 case typically runs about four months from petition to discharge; Chapter 13 stretches over three to five years of court-supervised payments.1United States Courts. Discharge in Bankruptcy – Bankruptcy Basics

Step 1: Complete Credit Counseling Before You File

Federal law requires you to complete a credit counseling briefing from a nonprofit agency approved by the U.S. Trustee Program before you file. The session must happen within 180 days before your filing date and can be done by phone or online.2Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor The agency reviews your income, debts, and expenses to see whether a repayment plan outside bankruptcy could work. Either way, you receive a certificate showing you completed the briefing, which you file with your petition.

Skip this step and the court can dismiss your case.3United States Department of Justice. Credit Counseling and Debtor Education Information Narrow exceptions apply for people who are incapacitated, disabled, or on active military duty in a combat zone. If a real emergency forces you to file first, you can request a temporary exemption, but you must complete the course within 30 days of filing, with a possible 15-day extension for good cause.2Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor

Approved agencies typically charge $20 to $50. Fees must be waived or reduced for people whose income falls below 150% of the federal poverty guidelines, and partial reductions may apply up to 175%. The U.S. Trustee’s website maintains a state-by-state list of approved providers.3United States Department of Justice. Credit Counseling and Debtor Education Information

Step 2: Decide Between Chapter 7 and Chapter 13

The choice between these two chapters shapes everything that follows. Chapter 7 is a liquidation. A court-appointed trustee collects your non-exempt property, sells it, and pays creditors from the proceeds. In exchange, most of your remaining unsecured debts are wiped out. Chapter 7 works best if your income is limited and you have few assets beyond what the law lets you keep.

Chapter 13 restructures rather than liquidates. You propose a plan lasting three to five years, funded by your future income, and you keep your property while paying creditors under court supervision. If your household income falls below your state’s median for your family size, the plan can be as short as three years; otherwise it generally runs five. Chapter 13 is designed for people with steady income who have fallen behind on a mortgage or car loan and want time to catch up. It also has debt limits: at the time of filing, unsecured debts must be below $526,700 and secured debts below $1,580,125.4United States Courts. Chapter 13 – Bankruptcy Basics

The Means Test for Chapter 7

If your debts are primarily consumer debts, you must pass the means test to file Chapter 7. The test compares your household income over the past six months to the median income for your family size in your state. Fall below the median and you pass automatically.5Office of the Law Revision Counsel. 11 USC 707 – Dismissal of Case or Conversion to Case Under Chapter 11 or 13

Above the median, the calculation gets more involved. The court subtracts allowed expenses, drawn from IRS National and Local Standards, from your monthly income and multiplies the remainder by 60. Depending on how that figure compares to fixed statutory thresholds and to your total unsecured debt, the court may presume abuse and push you toward Chapter 13 or dismissal.5Office of the Law Revision Counsel. 11 USC 707 – Dismissal of Case or Conversion to Case Under Chapter 11 or 13 State median figures change twice a year, so the numbers that matter are the ones in effect on your filing date. The U.S. Trustee Program publishes the current tables.6United States Department of Justice. November 1, 2025 Median Income Table

The means test does not apply if your debts are primarily business debts, or if you are a disabled veteran whose debts arose mainly during active duty.

Step 3: Gather Documents and Fill Out the Forms

Federal law spells out what you must disclose. Your petition includes a list of every creditor, a schedule of all assets and liabilities, a breakdown of monthly income and expenses, and a statement of your financial affairs.7Office of the Law Revision Counsel. 11 USC 521 – Debtors Duties In practical terms, that means pulling together bank statements, pay stubs, tax returns, mortgage and loan statements, vehicle titles, and records of any property you own.

You also need your most recent federal tax return. At least seven days before your meeting of creditors, you must give the trustee a copy of that return or a transcript. Chapter 13 filers face an extra requirement: every tax return for the four years before filing must actually be on file with the IRS and state tax authorities. If you’re behind, catch up before your case can move forward.8United States Bankruptcy Court District of Columbia. Important Information About Tax Returns

Each debt is classified as secured (backed by collateral), priority (debts the law puts first, such as certain taxes and support obligations), or general unsecured. Property values should reflect what an item would sell for today. Accuracy matters. Failing to list an asset can cost you your discharge, and forgetting a creditor can mean that creditor’s debt survives.

The official forms are free on the U.S. Courts website. The main petition is Form 101, followed by schedules 106A through 106J covering property, debts, income, and expenses. Chapter 7 filers also complete the means test forms (122A-1 and, when required, 122A-2).9United States Courts. Bankruptcy Forms

Step 4: Know What You Keep and What Survives

Bankruptcy does not take everything, and it does not erase everything. Two rules govern what you walk away with.

First, exemptions. Federal law protects a set list of property from liquidation, including equity in your home (up to $31,575 under the federal exemption as adjusted April 1, 2025), equity in one vehicle (up to $5,025), household goods (up to $800 per item and $16,850 total), jewelry, tools of the trade, and a wildcard amount. Social Security benefits, veterans’ benefits, disability payments, and most retirement accounts are also protected.10Office of the Law Revision Counsel. 11 USC 522 – Exemptions Many states have their own lists; some let you choose between federal and state exemptions, others require the state set. State exemptions vary widely and can be significantly more generous, particularly for homestead equity, which some states protect without any cap. Check the current figures for your state when you file.

Second, non-dischargeable debts. A discharge eliminates personal liability for most debts, but certain categories survive:

A creditor left off your petition may also keep its right to collect if it never learns of the case in time to file a claim. That mistake is easy to avoid and painful to repair.

Step 5: File the Petition and Trigger the Automatic Stay

You file the completed petition, schedules, and supporting documents with the clerk of the U.S. Bankruptcy Court in the district where you live. Most courts accept electronic filings, and some also take paper submissions at the clerk’s window.

Chapter 7 filing fees total roughly $338. Chapter 13 carries a $235 case filing fee plus a $75 administrative fee.4United States Courts. Chapter 13 – Bankruptcy Basics If you can’t pay upfront, you can apply to spread the fee over up to four installments across 120 days.12United States Courts. Application for Individuals to Pay the Filing Fee in Installments Chapter 7 filers whose income is below 150% of the poverty guidelines can apply for a full fee waiver using Form 103B.9United States Courts. Bankruptcy Forms

Filing without a lawyer (pro se) is allowed but risky. Chapter 7 attorney fees typically run $1,200 to $2,500 for a straightforward case; Chapter 13 fees often run $2,500 to $5,000 and are frequently rolled into the repayment plan.

The moment the clerk accepts your petition, the automatic stay takes effect. It freezes nearly all collection activity: lawsuits, wage garnishments, foreclosure proceedings, repossessions, collection calls, and pending utility shutoffs. Important exceptions: the stay does not stop criminal proceedings, actions to establish or collect child support or alimony from property outside the estate, or a government agency’s regulatory or police enforcement. Creditors who violate the stay can be sanctioned.13Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay If you had a bankruptcy case dismissed within the past year, the stay in a new case lasts only 30 days unless the court extends it; two or more dismissals in the past year mean no automatic stay at all without a court order.

Step 6: Attend the Meeting of Creditors

Roughly 20 to 40 days after filing, you attend the meeting of creditors, often called the 341 meeting. It’s run by the bankruptcy trustee assigned to your case, not a judge, and creditors rarely attend in person. You testify under oath about the information in your petition.14United States Department of Justice. Section 341 Meeting of Creditors

Bring a government-issued photo ID and proof of your Social Security number (an SSN card, W-2, or 1099 usually works). The trustee verifies your identity, confirms your paperwork, and asks about assets, income, and debts. Most meetings run 10 to 15 minutes. If something is missing or unclear, the trustee can continue the meeting to a later date.14United States Department of Justice. Section 341 Meeting of Creditors Answer directly, stick to what you’re asked, and don’t volunteer extra material.

Step 7: Complete the Financial Management Course

After filing, and before the court will grant your discharge, you must complete a second course, this one on personal financial management. It’s separate from the pre-filing counseling. The provider must be approved by the U.S. Trustee Program, and the course covers budgeting, money management, and responsible credit use.15Office of the Law Revision Counsel. 11 US Code 727 – Discharge

You then file the Certificate of Debtor Education with the court. In a Chapter 7 case, that certificate must be filed within 60 days after the date first set for the 341 meeting.16United States Bankruptcy Court Northern District of Indiana. Financial Management Miss the deadline and the court can close your case without granting a discharge, leaving every debt intact. The course costs roughly $10 to $50 and takes a couple of hours online.

How Long Until You’re Discharged

In a Chapter 7 case, the court typically issues the discharge about 60 days after the 341 meeting, so the full process from petition to discharge usually takes around four months.1United States Courts. Discharge in Bankruptcy – Bankruptcy Basics Chapter 13 is a longer commitment: the discharge comes only after you complete every payment under the three-to-five-year plan.

If You’ve Filed Before: Waiting Periods

Prior bankruptcy discharges trigger waiting periods before you can receive another one. All periods run from the filing date of the prior case, not the discharge date:

  • Chapter 7 after a prior Chapter 7: eight years.
  • Chapter 13 after a prior Chapter 7: four years.
  • Chapter 13 after a prior Chapter 13: two years.
  • Chapter 7 after a prior Chapter 13: six years, unless you paid 100% of claims in the earlier case, or paid at least 70% under a good-faith plan that represented your best effort.

You can technically file a new case before the waiting period ends, but you won’t be eligible for a discharge. That makes the filing useful only if you need the automatic stay.