How to File for Chapter 7 Bankruptcy
If you are facing overwhelming debt and are unable to pay your bills, filing for Chapter 7 bankruptcy may be an option to consider. This type of bankruptcy allows individuals to wipe out most of their unsecured debts, such as credit card debts and medical bills. However, filing for Chapter 7 bankruptcy can be a complex process, and it’s important to understand the steps involved. In this article, we’ll go over the basics of how to file for Chapter 7 bankruptcy.
Summary: To file for chapter 7 bankruptcy individuals must: complete credit counseling; prepare and file the bankruptcy petition, bankruptcy schedules, and financial documents; pay the filing fee; attend the 341 meeting of creditors; and complete a debtor education course.
Click on any of the titles below to jump to the relevant section:
1. Determine if Chapter 7 Bankruptcy is the Right Choice for You
3. Prepare Your Bankruptcy Forms to File for Chapter 7 Bankruptcy
A. Forms that Must be Filed on the Day You Initially File for Chapter 7 Bankruptcy
B. Forms that Must be Filed within 14 Days After You Initially File for Chapter 7 Bankruptcy
4. Locate Where to File Your Chapter 7 Bankruptcy Forms and File Them
5. Attend the 341 Meeting of Creditors
6. Complete a Debtor Education Course
Chapter 7 Bankruptcy Forms Checklist
1. Determine if Chapter 7 Bankruptcy is the Right Choice for You
Before filing for Chapter 7 bankruptcy, it’s important to determine if it’s the right choice for your situation. This type of bankruptcy is typically best suited for individuals with little to no income and significant unsecured debts. It’s important to note that Chapter 7 bankruptcy does not eliminate all debts, such as student loans or child support.
If you are uncertain about whether Chapter 7 bankruptcy is the right option for you, it is worth considering filing for Chapter 13 bankruptcy instead. Chapter 13 bankruptcy is essentially a payment plan rather than a liquidation. This type of bankruptcy allows you to reorganize your debt and create a payment plan that lasts for three to five years. The payment plan is based on your disposable income, and you are required to make payments to a bankruptcy trustee who will then distribute the funds to your creditors. By the end of the payment plan, you will have paid off a portion of your debts, and any remaining eligible debts will be discharged. So, if you are unsure about Chapter 7 bankruptcy, exploring the option of filing for Chapter 13 bankruptcy can be a viable alternative for managing your debt.
2. Complete Credit Counseling
Individuals are required to complete credit counseling from an approved agency at least 180 days before filing for Chapter 7 bankruptcy. This counseling will help you understand your financial situation and explore alternatives to bankruptcy. Once you finish the counseling, you will be given a certificate that must be submitted as a part of your bankruptcy case.
You can find this portion of the law in the Bankruptcy Code at 11 U.S.C. § 109 (h).
3. Prepare Your Bankruptcy Forms to File for Chapter 7 Bankruptcy
To file for Chapter 7 bankruptcy, you will need to complete and file several forms with the bankruptcy court. Some forms must be filed on the day you file for bankruptcy with the court. Other forms must be filed within fourteen (14) days after you file for bankruptcy with the court if you did not already file these forms on the day you filed for bankruptcy.
Remember to keep a copy of all forms you file for your records.
Also, if you have minor children, it’s important not to list their full name. Instead, you should use the child’s initials and provide the full name and address of their parent or guardian. For instance, you could write “A.B., a minor child” to ensure that the minor’s identity remains anonymous.
You can find this portion of the law in the Bankruptcy Code at 11 U.S.C. § 112.
The official bankruptcy forms are on the United States Courts website. You should use the forms directly from the U.S. Courts website to ensure that you have the most accurate forms.
A. Forms that Must be Filed on the Day You Initially File for Chapter 7 Bankruptcy
You must file the forms below on the day you initially file for bankruptcy.
- Voluntary Petition for Individuals Filing for Bankruptcy (Form B 101)
- Statement About Your Social Security Numbers (Form B 121)
- Credit Counseling Certificate
- Creditor Matrix / Mailing Matrix
- Filing Fee
If you cannot pay the filing fee, then you may file Form B 103A (Application for Individuals to Pay the Filing Fee in Installments) or Form B 103B (Application to Have the Chapter 7 Filing Fee Waived).
You may also need to file these forms if applicable:
- Initial Statement About an Eviction Judgment Against You (Form B 101A)
- Statement About Payment of an Eviction Judgment Against You (Form B 101B)
I. Petition for Chapter 7 Bankruptcy (Form B 101)
This form initiates the bankruptcy process and provides the court with information about your financial situation.
II. Statement About Your Social Security Numbers (Form B 121)
This form provides the court with your Social Security number or federal Individual Taxpayer Identification number, but only the last four digits will be made public to protect your privacy. This information will be made available to your creditors, the U.S. trustee or bankruptcy administrator, and the trustee assigned to your case.
Do not file this form as a part of the public case file. You must submit it separately following your local court procedures.
III. Credit Counseling Certificate
If you completed credit counseling and you haven’t received the certificate, you may file it within 14 days of filing for bankruptcy.
IV. Creditor Matrix / Mailing Matrix
You need to make a list of your creditors’ names and addresses in a specific format that your local bankruptcy court will give you. It should look like a mailing list.
V. Filing Fee
The cost to file for Chapter 7 bankruptcy is $338. If you cannot afford the bankruptcy then you can file a form requesting to either waive the fee or pay the fee in installments.
Application for Individuals to Pay the Filing Fee in Installments (Form B 103A)
This form asks the court to allow you to pay the bankruptcy fee over time.
Application to Have the Chapter 7 Filing Fee Waived (Form B 103B)
This form asks the court to allow you to waive the $338 filing fee.
VI. Initial Statement About an Eviction Judgment Against You (Form B 101A)
If your landlord has an eviction judgment against you, you can use Form 101A. If you want to stay in your home for the first 30 days after filing, make sure to mention that on the form.
VII. Statement About Payment of an Eviction Judgment Against You (Form B 101B)
If you want to stay in the home you rent for more than 30 days after filing for bankruptcy, you can use Form 101B after you have filled out Form 101A.
B. Forms that Must be Filed within 14 Days After You Initially File for Chapter 7 Bankruptcy
You must file the forms below within fourteen (14) days after you file your bankruptcy petition. If you can, it is best to file these forms at the same time you file your bankruptcy petition.
- Schedule A/B: Property (Form 106A/B)
- Schedule C: The Property You Claim as Exempt (Form B 106C)
- Schedule D: Creditors Who Have Claims Secured by Your Property (Form B 106D)
- Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F)
- Schedule G: Executory Contracts and Unexpired Leases (Form B 106G)
- Schedule H: Your Codebtors (Form B 106H)
- Schedule I: Your Income (Form B 106I)
- Schedule J: Your Expenses (Form B 106J)
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- Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106Sum).
- Declaration About an Individual Debtor’s Schedules (Form B 106Dec)
- Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107)
- Copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy.
- Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108)
- Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1)
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You may also need to file the following forms if your income is above the median income in your state.
- Chapter 7 Means Test Calculation (Form B 122A-2)
- Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Form B 122A-1Supp)
I. Schedule A/B: Property (Form B 106A/B)
This schedule asks you to list all of your property, including your home, vehicles, personal and household items, and financial assets.
II. Schedule C: The Property You Claim as Exempt (Form B 106C)
Schedule C asks you to list your property that is not allowed to be sold to your creditors.
Read More: What Property is Exempt in a Chapter 7 Bankruptcy?
III. Schedule D: Creditors Who Have Claims Secured by Your Property (Form B 106D)
Schedule D asks you to list all of your secured creditors. A secured creditor is someone who has a legal right to take a specific piece of property or collateral if you do not repay a loan or debt. An example of a secured debt is a mortgage. Schedule D also asks you to list the property that you put up as security for your debt, as well as how much money you owe your creditors.
IV. Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F)
Schedule E/F asks you to list all of your unsecured creditors and what you owe to them. A secured creditor is someone who does not have a legal right to take a specific piece of property or collateral if you do not repay a loan or debt. An example of an unsecured debt is a credit card.
Schedule E/F divides your unsecured claims into two categories: priority unsecured claims and non-priority unsecured claims. Examples of priority unsecured claims include taxes and domestic support payments. Examples of non-priority unsecured claims may include credit cards and student loans.
V. Schedule G: Executory Contracts and Unexpired Leases (Form B 106G)
Schedule G asks whether you have executory contracts or unexpired leases. Executory contracts and unexpired leases are agreements that are still active and have not been completed by both parties at the time of filing for bankruptcy. An executory contract is an agreement where both parties still have to fulfill their obligations, while an unexpired lease is a rental agreement that is still ongoing.
VI. Schedule H: Your Codebtors (Form B 106H)
Schedule H asks if there are any other people or organizations who share responsibility for your debts. These people are called codebtors.
VII. Schedule I: Your Income (Form B 106I)
This schedule asks for information on your job and income.
VIII. Schedule J: Your Expenses (Form B 106J)
This schedule asks for information on the number of people in your household and what you spend.
IX. Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106Sum)
Form 106 Summary asks you to summarize your assets, liabilities, income, and expenses.
X. Declaration About an Individual Debtor’s Schedules (Form B 106Dec)
Form 106 Declaration asks you to state that the information you wrote in your schedules is correct.
XI. Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107)
Form B 107 asks for information about: where your income comes from, payments that you made before you filed for bankruptcy, court cases that you are in, gifts that you received, financial accounts that you have, and businesses that you may have. This form also asks about any recent asset transfers or property sales.
XII. Copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy.
You must file copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy. Some courts may ask you to give these documents to the trustee assigned to your case instead of filing them with the court.
XIII. Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108)
If you file for chapter 7 bankruptcy, you need to complete Form B108 if any creditors have a secured claim to take your property, or if you are renting personal property, such as a car, and the lease has not yet ended. The purpose of the statement of intention for individuals filing under chapter 7 is to find out what the debtor plans to do with their leased personal property and property with secured claims.
XIV. Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1)
Form B 122A-1 asks for your current monthly income. Your current monthly income is the average amount of money you receive from all sources on a monthly basis over the last six months before filing for bankruptcy.
Read More: Understanding the Debtor’s Current Monthly Income
XV. Chapter 7 Means Test Calculation (Form B 122A-2)
The means test form is used to calculate if your income is low enough to file for Chapter 7 bankruptcy. If your yearly income, based on your current monthly income, is lower than the state median income, then you pass the means test and do not need to complete Form 122A-2.
Read More: What is the Means Test?
XVI. Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Form B 122A-1Supp)
If you failed the means test and you believe that you should be exempted from a presumption of abuse when filing for Chapter 7 bankruptcy, you should complete this form. A presumption of abuse means that based on your income, the court assumes that you have enough money to pay your creditors and you should not be filing for bankruptcy. If your case is presumed to be abusive, the court will likely dismiss your case so that you do not abuse the bankruptcy system.
4. Locate Where to File Your Chapter 7 Bankruptcy Forms and File Them
For most individuals, the bankruptcy forms should be filed in the United States Bankruptcy Court in the district where you have lived for the majority of the past 180 days.
You can find this portion of the law at 28 U.S. Code § 1408.
If you do not know where your local district is, you can use the Federal Court Finder to locate it.
5. Attend the 341 Meeting of Creditors
After filing your bankruptcy forms, you will need to attend the 341 meeting of creditors. This meeting is typically held within 30-45 days after your bankruptcy filing and allows your creditors to ask you questions about your financial situation.
Read More: What is the meeting of creditors?
6. Complete a Debtor Education Course
Before your debts can be discharged, individuals are required to complete a debtor education course from an approved agency. This course will help you understand how to manage your finances after bankruptcy.
7. Receive Your Discharge
If your Chapter 7 bankruptcy is approved, you will receive a discharge of your eligible debts. This means that you are no longer responsible for paying these debts.
Chapter 7 Bankruptcy Forms Checklist
To help guide you through the process, we’ve put together a comprehensive checklist of the documents you’ll need to complete when filing. This chapter 7 bankruptcy forms checklist can help ensure that you don’t miss any important steps or requirements along the way.
| Chapter 7 Bankruptcy Checklist | |
|---|---|
Forms that Must be Filed on the Day You Initially File for Bankruptcy | |
Voluntary Petition for Individuals Filing for Bankruptcy (Form B 101) | ☐ |
| Statement About Your Social Security Numbers (Form B 121) | ☐ |
| Credit Counseling Certificate | ☐ |
| Creditor Matrix / Mailing Matrix | ☐ |
| Initial Statement About an Eviction Judgment Against You (Form B 101A) Or Statement About Payment of an Eviction Judgment Against You (Form B 101B) | ☐ |
Forms that Must be Filed within 14 Days After You Initially File for Bankruptcy | |
Schedule A/B: Property (Form 106A/B) | ☐ |
| Schedule C: The Property You Claim as Exempt (Form B 106C) | ☐ |
| Schedule D: Creditors Who Have Claims Secured by Your Property (Form B 106D) | ☐ |
| Schedule E/F: Creditors Who Have Unsecured Claims (Form B 106E/F) | ☐ |
| Schedule G: Executory Contracts and Unexpired Leases (Form B 106G) | ☐ |
| Schedule H: Your Codebtors (Form B 106H) | ☐ |
| Schedule I: Your Income (Form B 106I) | ☐ |
| Schedule J: Your Expenses (Form B 106J) | ☐ |
| Summary of Your Assets and Liabilities and Certain Statistical Information (Form B 106Sum) | ☐ |
| Declaration About an Individual Debtor’s Schedules (Form B 106Dec) | ☐ |
| Statement of Financial Affairs for Individuals Filing for Bankruptcy (Form B 107) | ☐ |
| Copies of all pay stubs or documents showing your income from the last 60 days before you filed for bankruptcy. | ☐ |
| Statement of Intention for Individuals Filing Under Chapter 7 (Form B 108) | ☐ |
| Chapter 7 Statement of Your Current Monthly Income (Form B 122A-1) | ☐ |
Forms that Must be Filed if Your Income is Above the Median Income in Your State | |
Chapter 7 Means Test Calculation (Official Form 122A-2) | ☐ |
| Statement of Exemption from Presumption of Abuse Under § 707(b)(2) (Official Form 122A-1Supp) | ☐ |
Conclusion
Filing for Chapter 7 bankruptcy can be a difficult decision, but it can provide a fresh start for individuals facing overwhelming debt. To file for Chapter 7 bankruptcy, individuals must complete credit counseling, prepare and file a number of forms, attend the 341 meeting of creditors, and complete a debtor education course. If you are considering filing for Chapter 7 bankruptcy, it’s important to consult with a bankruptcy attorney to ensure that you understand the process and your options.
Last Updated April 23, 2023