To file for bankruptcy, you pick between Chapter 7 and Chapter 13, complete a pre-filing credit counseling session, prepare a detailed set of financial schedules, submit a petition to the federal bankruptcy court in your district with the filing fee, attend a short meeting with the trustee, finish a second financial education course, and wait for the court to enter your discharge. A Chapter 7 case typically runs about four to six months from filing to discharge. Chapter 13 runs three to five years because you’re repaying part of your debt through a court-approved plan.
Pick the Right Chapter First
The chapter you file under decides almost everything else: how long the case lasts, whether you keep non-exempt property, and whether you repay creditors or walk away.
Chapter 7 is a liquidation. A court-appointed trustee reviews what you own, sells anything an exemption doesn’t protect, pays creditors from the proceeds, and the court discharges the qualifying balance. In practice, many filers lose no property at all because their assets fall within the exemption limits. To qualify, you have to pass the means test. The court compares your average gross income over the six months before filing against the median income for a household your size in your state. Below the median, you qualify. Above it, the court subtracts allowed expenses to see whether you have enough disposable income to fund a repayment plan instead.1Office of the Law Revision Counsel. 11 U.S. Code 707 – Dismissal of a Case or Conversion to a Case Under Chapter 11 or 13 The state median figures come from Census data and are updated periodically by the U.S. Trustee’s office.2United States Department of Justice. Means Testing
Chapter 13 is a reorganization. You keep your property and repay a portion of what you owe over three to five years based on your disposable income. It’s the better fit if you’re behind on a mortgage or car loan and want to catch up through the plan, or if you have non-exempt assets you’d lose in Chapter 7. Your debts have to stay under statutory caps: as of April 1, 2025, $526,700 in unsecured debt and $1,580,125 in secured debt.3Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor4Federal Register. Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases
Complete Credit Counseling Before You File
Federal law requires you to complete a credit counseling briefing from a U.S. Trustee-approved nonprofit agency within the 180 days before you file.3Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor The session can be done by phone, online, or in person. The counselor reviews your finances, discusses whether a debt management plan might work instead, and issues a certificate you attach to your petition. Filing without that certificate typically means your case is dismissed on the spot.5United States Department of Justice. Credit Counseling and Debtor Education Information
There are narrow exceptions. If you filed an emergency petition, the court can give you up to 30 days to complete the counseling, with a possible 15-day extension. Waivers are available for disability, mental incapacity, or active military duty in a combat zone.3Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor
Gather Your Financial Records and Fill Out the Forms
Bankruptcy courts demand a complete accounting of your financial life. Everything you sign is under penalty of perjury, and omissions can trigger denial of discharge or a fraud investigation. You’ll need:
- Creditor information: names, addresses, account numbers, and exact balances for every debt.
- Income records: pay stubs covering at least the 60 days before filing, plus your most recent federal tax return.
- An asset inventory: everything you own with estimated market values, including real estate, vehicles, bank accounts, retirement funds, and household goods.
- A monthly expense breakdown: rent or mortgage, utilities, food, transportation, insurance, and other regular costs.
All of that gets transferred onto the Official Bankruptcy Forms. The main document is Form 101, the Voluntary Petition for Individuals Filing for Bankruptcy.6United States Courts. Voluntary Petition for Individuals Filing for Bankruptcy Alongside it, you complete a series of schedules. Schedule A/B covers your property, Schedule D lists secured debts like mortgages and car loans, Schedule E/F lists unsecured debts like credit cards and medical bills, and Schedules I and J give a monthly snapshot of income and expenses.
File the Petition and Pay the Fee
You submit the full package to the bankruptcy court clerk in the federal district where you live. Attorneys file electronically; a pro se filer can deliver the documents in person.
Court filing fees are set by federal statute. The totals, including administrative fees, are $338 for Chapter 7 and $313 for Chapter 13.7Office of the Law Revision Counsel. 28 U.S. Code 1930 – Bankruptcy Fees You don’t have to pay all of that at filing. Any individual filer can request an installment plan, with all payments due within 120 days of filing (extendable to 180 days for good cause). In a Chapter 7 case, the court can waive the fee entirely if your household income is below 150% of the federal poverty line.8Legal Information Institute. Federal Rules of Bankruptcy Procedure Rule 1006 – Filing Fee
What the Automatic Stay Does the Moment You File
When the clerk accepts your petition, the court assigns a case number and the automatic stay takes effect. It functions as a federal court order that halts nearly all collection activity against you: lawsuits, wage garnishments, bank levies, foreclosure proceedings, repossessions, and creditor calls all stop.9Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay A creditor who knowingly violates the stay can face sanctions.
The stay has limits. It does not stop criminal proceedings, and it does not block actions to establish or collect domestic support like child support and alimony. Divorce proceedings can continue, though a court cannot divide property that belongs to the bankruptcy estate while the stay is active. Certain Tax Court proceedings that began before filing can also proceed. A secured creditor, most often a mortgage lender, can ask the court to lift the stay for a specific asset, typically by showing the property isn’t adequately protected or that you have no equity in it.9Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay
Attend the 341 Meeting of Creditors
Between 21 and 50 days after filing, you attend a hearing called the 341 meeting, named after the section of the Bankruptcy Code that requires it.10Office of the Law Revision Counsel. 11 U.S. Code 341 – Meetings of Creditors and Equity Security Holders No judge is present. Your assigned bankruptcy trustee runs the meeting, which typically lasts 10 to 20 minutes.11United States Department of Justice. Section 341 Meeting of Creditors
You’ll be placed under oath and answered questions about your petition, your assets, your debts, and your income. The trustee is checking accuracy and completeness. Creditors receive notice and have the right to attend and ask questions, but most don’t show up.
Bring government-issued photo identification and proof of your Social Security number (a Social Security card, W-2, or pay stub showing the full number). Have copies of your filed paperwork and your most recent tax return available. The trustee typically requires those documents at least seven days before the meeting. If you can’t verify your identity and Social Security number, the trustee can continue the meeting to a later date, which delays your case.
Take the Second Course After Filing
Credit counseling is only half of the required education. After your petition is on file, you must complete a separate debtor education course covering budgeting, money management, and strategies for avoiding future financial trouble. It runs about two hours and can be taken online.12Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge
When you finish, you receive a certificate that must be filed with the court before it will grant your discharge. This is where cases stall. Filers finish the 341 meeting and forget the second course. Without that certificate on file, the court will not enter a discharge order and may close your case without eliminating any debt.5United States Department of Justice. Credit Counseling and Debtor Education Information
When and How the Discharge Arrives
In a Chapter 7 case, the discharge order typically arrives about 60 days after the first 341 meeting date. That window gives creditors and the trustee time to object. If no one objects, the court enters the discharge and your qualifying debts are legally eliminated. If a creditor objects to a specific debt rather than the entire discharge, the court resolves that dispute separately while the rest of your debts get discharged on schedule.
In Chapter 13, the discharge comes only after you complete every payment under your three-to-five-year plan, so the discharge date can be years out from your filing date.
A discharge permanently bars creditors from collecting on the debts it covers. A creditor who tries anyway faces contempt of court.
Debts That Bankruptcy Won’t Erase
Some debts cannot be wiped out no matter which chapter you file. Knowing this before you file prevents an unpleasant surprise afterward.
- Child support and alimony survive in full.
- Recent income taxes (generally from the past three years) and any taxes tied to fraud or unfiled returns are non-dischargeable.
- Federal and private student loans survive unless you win a separate lawsuit within the bankruptcy case proving that repayment would impose an undue hardship. Courts have historically set a high bar, typically requiring you to show that you cannot maintain a minimal standard of living while repaying, that your situation is unlikely to improve, and that you made good-faith repayment efforts.
- Money you obtained through false pretenses, fraud, or misrepresentation stays on your ledger.
- Debts for death or personal injury caused by driving under the influence are non-dischargeable.
- Criminal fines and most government penalties survive.
- Debts you failed to include in your schedules generally cannot be discharged, which is another reason accurate paperwork matters.13Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
Recent luxury spending draws extra scrutiny. Consumer debts for luxury goods exceeding $500 to a single creditor within 90 days of filing are presumed non-dischargeable, and cash advances over $750 taken within 70 days of filing are treated the same way.13Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
What You Actually Get to Keep
Bankruptcy exemptions decide what stays yours. In a Chapter 7 case, the trustee can only liquidate property that exceeds your exemption limits. In Chapter 13, exemptions influence how much you must pay unsecured creditors through your plan. Most filers can choose between their state’s exemption system and the federal exemptions, though some states require you to use theirs.
The federal exemptions, adjusted effective April 1, 2025, protect up to $31,575 of equity in your primary residence, up to $5,025 in one motor vehicle, up to $16,850 total in household goods (capped at $800 per item), up to $2,125 in jewelry, and up to $3,175 in tools of the trade. A wildcard covers $1,675 in any property, plus up to $15,800 of any unused portion of the homestead exemption, and it’s where filers often shelter cash or tax refunds.14Office of the Law Revision Counsel. 11 U.S. Code 522 – Exemptions Married couples filing jointly can each claim the full set of exemptions, effectively doubling the protected amounts on jointly owned property.15Legal Information Institute. Doubling
What Filing Costs All In
Court filing fees are the only fixed cost: $338 for Chapter 7 and $313 for Chapter 13.7Office of the Law Revision Counsel. 28 U.S. Code 1930 – Bankruptcy Fees Beyond that, your costs turn on whether you hire an attorney and which courses you use.
The two mandatory courses typically run about $20 to $50 each. Attorney fees vary by location and complexity. Chapter 7 representation commonly costs between $1,000 and $2,500. Chapter 13 attorneys often charge $2,500 to $6,000 or more, with fees frequently built into the repayment plan itself. Filing without a lawyer is legal and saves money, but pro se filers face a meaningfully higher rate of case dismissal due to paperwork errors and missed deadlines.
Life After the Discharge
A Chapter 7 bankruptcy stays on your credit report for 10 years from the filing date. Chapter 13 drops off after seven years. The bankruptcy will be visible to anyone who pulls your credit during that window, though its practical impact fades over time as you rebuild.
Federal law also restricts how soon you can file again and receive another discharge. After a Chapter 7 discharge, you must wait eight years from the date you filed that case before filing another Chapter 7. After a Chapter 7 discharge, the wait to receive a discharge in Chapter 13 is four years.12Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge These limits apply to obtaining a discharge, not to filing. You can technically file a new case sooner, but the court will not grant a discharge if you’re inside the waiting period.