Chapter 7 Bankruptcy
Learn why this is the most common type of bankruptcy and what you should know about getting a fresh start through Chapter 7 bankruptcy.
Chapter 7 is the most common type of bankruptcy relief. It helps people who simply don’t make enough to make ends meet eliminate their debt while protecting their most important belongings. Learn how Chapter 7 bankruptcy works, the pros and cons of filing bankruptcy, what types of debt can’t be eliminated, and more.
This page is a hub for people looking to erase debts that they can’t afford to pay.
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Chapter 7 Means Test Calculator
Written by Attorney Andrea Wimmer.
Updated November 5, 2024
The Chapter 7 means test is the analysis that determines whether you're eligible to file Chapter 7 bankruptcy. It’s called the bankruptcy means test because, at its most basic level, it looks at whether someone has the means (ability) to pay their debts. The means test has two main steps, but if you "pass" the first step, you don't have to do the second step. In the first step, you'll compare your income to the median income in your state based on the size of your household. If you don't "pass" the first step, you can move on to the second step, which takes your expenses into account as well.
Read More →What Is Chapter 7 Bankruptcy & When Should I File?
Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated May 21, 2024
Chapter 7 bankruptcy is a common legal process to clear your debt, but it’s not right for everyone. One good question to ask yourself if you’re considering Chapter 7 bankruptcy: Do I have more debt than I’ll ever be able to pay back, given my current income and property? If the answer is "yes," then Chapter 7 bankruptcy may be the right option.
Read More →Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference?
Written by Attorney Andrea Wimmer.
Updated July 27, 2023
Chapter 7 and Chapter 13 bankruptcy are the two most common types of personal bankruptcy filings. Chapter 7 bankruptcy can wipe out unsecured debts like credit card debt and medical bills in just 3-4 months. Though the filing can stay on your credit report for 10 years. You must pass a means test and meet certain criteria to qualify for Chapter 7. Chapter 13 takes longer — usually 3-5 years — because filers are on a repayment plan. After the plan is up, any remaining unsecured debt is discharged. Chapter 7 can stay on your credit report for up to 7 years. Some filers choose Chapter 13 because they don’t qualify for Chapter 7 or because they own certain assets they want to protect. Even though there are differences between Chapter 7 and Chapter 13 bankruptcy, each one grants the filer a fresh financial start in the form of a bankruptcy discharge — a court order that relieves you of your debt and bans creditors from trying to collect from you on this debt.
Read More →How Long Does Chapter 7 Bankruptcy Take?
Written by Attorney Andrea Wimmer.
Updated November 7, 2024
From filing to discharge (wiping out debts), Chapter 7 bankruptcy cases typically take 4–6 months. As far as personal bankruptcies go, Chapter 7 is the fastest. By comparison, Chapter 13 takes 3–5 years because a repayment plan is involved. If you file Chapter 7, the timeline for discharge will depend on how complicated your case is, what kind of debt you have, and how quickly you complete the requirements like the financial management course.
Read More →What Are the Chapter 7 Bankruptcy Income Limits?
Written by Attorney Andrea Wimmer.
Updated March 27, 2024
The Chapter 7 income limits were added in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Since Chapter 7 bankruptcy doesn’t involve a repayment plan of any kind, Congress worried about an abuse of the bankruptcy process by filers who could afford to pay their debts. To prevent this, Congress added a credit counseling requirement for anyone filing any type of bankruptcy and set income limits for Chapter 7 relief. The bankruptcy means test calculation determines whether someone can afford to pay a portion of their consumer debts as part of a Chapter 13 bankruptcy, which requires a 3–5 year repayment plan.
Read More →What Is the 341 Meeting of Creditors?
Written by the Upsolve Team. Legally reviewed by Lawyer John Coble
Updated November 4, 2024
The 341 meeting of creditors is a required meeting between a bankruptcy filer, the bankruptcy trustee, and sometimes creditors. It's an informal hearing often held virtually. Even when in person, it's not in a courtroom and no judge is present. The main purpose of the meeting is for the trustee to verify the bankruptcy filer's identity and the information in their bankruptcy forms. Creditors can also attend and ask questions, but this isn't common in Chapter 7 cases.
Read More →What is Chapter 7 bankruptcy?
Written by Attorney Andrea Wimmer.
Updated August 7, 2020
Chapter 7 bankruptcy is a type of bankruptcy case that can be filed by individuals, married couples, and businesses. It’s the most common type of bankruptcy and provides the fastest form of debt relief. Continue reading to learn more about how Chapter 7 bankruptcy works and what everyone filing a Chapter 7 bankruptcy should know.
Read More →How To File Bankruptcy for Free: A 10-Step Guide
Written by Attorney Andrea Wimmer.
Updated August 14, 2024
Chapter 7 bankruptcy is a powerful debt relief tool. It helps give a fresh start to those who are drowning in debt and can't see a way out. Though bankruptcy requires a lot of paperwork and documentation, many people with simple cases file successfully on their own without a lawyer. Here are the 10 steps to file your case successfully: 1. Collect your documents 2. Take the required credit counseling course 3. Complete the required bankruptcy forms 4. Get your filing fee ready or fill out a fee waiver request 5. Print your completed bankruptcy forms 6. Go to the court to file your forms 7. Mail required documents to your trustee 8. Take the second required bankruptcy course on financial management 9. Attend the 341 meeting with your trustee 10. Deal with your car loan if you have one
Read More →What Are the Pros and Cons of Filing Chapter 7 Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated May 21, 2024
The main pros to Chapter 7 are that you can receive immediate relief from collection actions (due to the automatic stay) as well as permanent relief from debts if your bankruptcy is discharged. The main cons to Chapter 7 bankruptcy are that most secured debts won’t be erased, you may lose nonexempt property, and your credit score will likely take a temporary hit. Filing for bankruptcy is a very effective way to eliminate debt and get a fresh start. As with everything, there are upsides and downsides to filing Chapter 7 bankruptcy.
Read More →What Type of Debt Can I Erase in Chapter 7 Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated November 7, 2024
Chapter 7 bankruptcy is a powerful tool that wipes out common consumer debts, including credit card debt, medical bills, personal loans, payday loans, unpaid utility bills, and more. Some debts, like child support and alimony, can’t be discharged in bankruptcy.
Read More →What To Expect at Your 341 Meeting of Creditors
Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated May 4, 2022
In your 341 meeting of creditors, the trustee in your case will verify your identity and the information in your bankruptcy petition. Creditors can also show up to ask questions, but this is rare. In this article and video, we’ll walk you through a typical 341 meeting of creditors in a Chapter 7 bankruptcy.
Read More →Chapter 7 Bankruptcy Forms Explained
Written by Attorney Andrea Wimmer.
Updated September 29, 2023
The Chapter 7 forms packet consists of a voluntary petition, schedules, and statements. The term “petition” is often used to describe the set of forms individuals filing for bankruptcy submit to the court. Here's a walk through of all of them.
Read More →What Is the Chapter 7 Bankruptcy Timeline?
Written by Kristin Turner, Harvard Law Grad. Legally reviewed by Attorney Andrea Wimmer
Updated September 29, 2023
Filing for Chapter 7 bankruptcy can be an intimidating and daunting process. Especially if it's not something you've ever dealt with before, you may not know where to begin or how it ends. Here is an overview of what to expect as you prepare for your Chapter 7 bankruptcy and what happens after your case has been filed with the bankruptcy court.
Read More →What Can Go Wrong at the Meeting of Creditors?
Written by Attorney Jenni Klock Morel.
Updated May 25, 2022
Not much can truly go wrong at the meeting of creditors. To avoid any potential issues, make sure to bring approved documents to prove your identity and Social Security number, read the Bankruptcy Information Sheet, and review your bankruptcy petition so you can answer any questions the trustee may have about your case. If someone from the U.S. Trustee's office or a creditor's attorney shows up to ask questions, try to stay calm and just answer their questions truthfully.
Read More →I Had My 341 Meeting. Now What?
Written by Attorney Andrea Wimmer.
Updated March 30, 2022
The court will grant your bankruptcy discharge 60 - 90 days after the meeting. If the trustee filed a no-asset report, the case will be closed pretty soon after the discharge is entered. Until your case is closed, make sure to keep an eye on any mail from the court or the trustee so you don’t miss anything important.
Read More →Trustee's Report of No Distribution & What It Means For Your Case
Written by Attorney Andrea Wimmer.
Updated March 29, 2022
The Trustee's Report of No Distribution, or NDR, lets the court and all interested parties know that no money will be paid to creditors.
Read More →Best Do It Yourself Chapter 7 Bankruptcy Software
Written by Kristin Turner, Harvard Law Grad.
Updated November 10, 2020
Bankruptcy doesn't have to be expensive or confusing. You can use do-it-yourself Chapter 7 bankruptcy software online. Check out Upsolve to get started with our free bankruptcy process.
Read More →Five Essential Tips to File Chapter 7 Bankruptcy
Written by Kristin Turner, Harvard Law Grad.
Updated November 15, 2023
Chapter 7 bankruptcy does not have to be complicated. Follow these 5 essential tips to make sure you have a successful case.
Read More →What Are the Chapter 7 Bankruptcy Rules?
Written by Attorney Andrea Wimmer.
Updated July 26, 2023
The Chapter 7 bankruptcy rules are not as difficult to understand as you might believe, but there’s quite a few of them. Keep reading to get a basic understanding of the Chapter 7 bankruptcy rules and ensure a successful Chapter 7 bankruptcy filing.
Read More →Filing for Bankruptcy with Electronic Self-Representation (ESR)
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
This article provides an overview of Electronic Self-Representation and how you can use it to file for Chapter 7 bankruptcy by yourself without the help of an attorney. If you can't afford an attorney, but don't want to go through the process on your own, Upsolve may be able to help!
Read More →How Will Chapter 7 Affect My Employment?
Written by Jonathan Petts.
Updated July 22, 2020
You cannot be fired simply because you filed for bankruptcy. In fact, employers usually don’t learn about it and it is illegal for an employer to discriminate based on your past filing history.
Read More →Requirements for Chapter 7 Bankruptcy
Written by Attorney Andrea Wimmer.
Updated August 11, 2023
Deciding to file Chapter 7 bankruptcy should involve a review of everything that is required to successfully get a bankruptcy discharge after the bankruptcy filing. What follows is an overview of the requirements to file Chapter 7 bankruptcy and the requirements to getting your Chapter 7 discharge.
Read More →How Do I Prepare for Bankruptcy?
Written by Jonathan Petts.
Updated September 3, 2020
It may be helpful to take these steps to prepare for filing for bankruptcy, whether you're working with a bankruptcy attorney or filing on your own online.
Read More →What Happens After You File for Bankruptcy?
Written by Attorney Jenni Klock Morel.
Updated October 30, 2024
After you file for bankruptcy, the court immediately issues an automatic stay, which stops most collection actions. Your case is assigned to a trustee who reviews your financial situation and oversees the sale of non-exempt assets in Chapter 7 cases. You'll attend a meeting of creditors, where you answer questions under oath about your finances. If your filing is approved, your eligible debts are discharged, meaning you don’t have to repay them.
Read More →10 Tips for DIY Bankruptcy Chapter 7
Written by Kristin Turner, Harvard Law Grad.
Updated August 11, 2023
Looking for a way to do a DIY Chapter 7 Bankruptcy? Here’s 10 tips to make sure you DIY Chapter 7 bankruptcy goes off without a hitch.
Read More →Where Can I Find Free Bankruptcy Chapter 7 Forms?
Written by Kristin Turner, Harvard Law Grad.
Updated December 1, 2020
Filing for bankruptcy can seem confusing, and the paperwork itself can be daunting. Find the bankrutpcy forms for free.
Read More →Finding Bankruptcy Paperwork for your Chapter 7 Case
Written by Jonathan Petts.
Updated December 1, 2020
Filing for bankruptcy can be complicated. This article gives tips on how to find the right paperwork to file for Chapter 7 bankruptcy.
Read More →Is Filing for Bankruptcy Bad?
Written by the Upsolve Team. Legally reviewed by Lawyer John Coble
Updated July 14, 2023
Bankruptcy has gotten a negative reputation over the years. But there are many benefits to filing for bankruptcy that don't get as much attention as the drawbacks. Depending on your situation, filing bankruptcy can sometimes be the best course of action.
Read More →How Bankruptcy Affects Credit Score
Written by Kristin Turner, Harvard Law Grad.
Updated August 10, 2023
There are a lot of misconceptions about the ways bankruptcy affects credit score. In this article, we'll dispel some of these myths and provide information on how to improve your credit score after bankruptcy.
Read More →Can I Get a Job, Housing, and Benefits if I File for Chapter 7 Bankruptcy?
Written by Jonathan Petts.
Updated July 2, 2022
Many people worry that filing bankruptcy will have a negative impact on their housing, job, and other important opportunities. The truth is that the vast majority of bankruptcy filers keep their day-to-day lives intact without issue. The law protects you from being fired for filing bankruptcy, and you can still receive public benefits.
Read More →What is bankruptcy fraud?
Written by Attorney Kassandra Kuehl. Legally reviewed by Attorney Andrea Wimmer
Updated December 18, 2020
Bankruptcy fraud is a broad term that describes a variety of actions that filers sometimes take to get an unfair advantage. Depending on what form that fraud takes, it’s considered a crime and is punishable by up to 5 years in federal prison and a (non-dischargeable) fine of up to $250,000. This article will explore some common types of bankruptcy fraud.
Read More →Should I File Bankruptcy Before Getting Married?
Written by Attorney Andrea Wimmer.
Updated March 9, 2022
If you’re planning to get married and you also need to deal with debt, you’re probably wondering when to file bankruptcy and how it will affect your spouse. There are pros and cons to filing for bankruptcy before marriage as well as filing after marriage. If you want to start your marriage with a clean financial slate and you qualify for Chapter 7, that’s a relatively quick way to achieve that goal. If you already have joint debts with your spouse-to-be, you may want to file after you get married to take advantage of more generous exemptions.
Read More →What is an Emergency Bankruptcy Filing?
Written by Attorney Paige Hooper.
Updated July 12, 2023
An emergency bankruptcy filing is when you file only the minimum required forms to get a bankruptcy case going. It helps you file your case quickly. Emergency filings are helpful if you need to stop serious collection measures like repossession, foreclosure, or wage garnishment. Once you file an emergency bankruptcy case, you need to complete the remaining paperwork within 14 days or you risk having your case dismissed.
Read More →Will my family, who I live with for free, learn about my bankruptcy?
Written by Jonathan Petts.
Updated July 22, 2020
Probably not. In general, family members are not notified of your bankruptcy unless (1) you owe them money, (2) they are jointly liable for one of your debts, or (3) you have a continuing contract or lease with them.
Read More →If I'm a widow, do I need to list my deceased spouse on my forms?
Written by Jonathan Petts.
Updated July 22, 2020
If your former spouse earned taxable income in the current year or the two years prior, you will need to list that income on your bankruptcy forms. You do not need to list any income that they earned prior to this time period, and __*you do not need to list them as a member of your household.*__
Read More →What is an "Official Form 309A -- No Proof of Claim?"
Written by Kristin Turner, Harvard Law Grad.
Updated August 7, 2020
The court sends this document to the creditors you listed on your bankruptcy paperwork when you file. It gives each creditor important information about your case and tells them what they need to do if they have a reasonable objection to your bankruptcy.
Read More →Can the trustee seize money that I received after I filed?
Written by Jonathan Petts.
Updated July 30, 2020
Whether the trustee can take money you receive after filing your case depends on whether you were entitled to the money at the time your case was filed and how it was listed on your forms, if at all.
Read More →How do I prepare for my hearing?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated September 29, 2020
Your bankruptcy process will include at least one (the 341 meeting), and likely two (fee waiver) hearings. Here are some of the most common hearing types you might encounter along the way to your fresh start.
Read More →How To Deal With Creditors That Contact You After You File Bankruptcy
Written by Curtis Lee, JD.
Updated May 17, 2022
If a debt collector contacts you after you've filed your bankruptcy case, you'll first want to make sure they know about your case. If it's been less than two weeks since you filed, they may not have been informed yet. If they weren't aware, let them know. If they indicate they know you filed bankruptcy but they refuse to stop trying to collect the debt, you can notify the bankruptcy court or speak with an attorney. Creditors aren't allowed to contact you after you file your case because of the automatic stay.
Read More →Should I Update My Forms If I Get a New Job Before Filing?
Written by Attorney Andrea Wimmer.
Updated September 8, 2020
Congratulations on your new job! If you haven't filed yet, and you really don't know what your monthly income will be until your first paycheck comes in, you have one of two options for how to handle this.
Read More →I missed my 341 Meeting! What should I do now?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
If you miss your scheduled 341 Meeting it is imperative that you speak with your assigned trustee ASAP and reschedule!
Read More →Does Bankruptcy Clear Judgments?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 8, 2023
When a creditor or debt collector gets a judgment against you, it's dischargeable as long as the original debt was dischargeable. The question becomes a bit more complicated if the creditor gets a judgment lien on your property. Here’s how it works.
Read More →3 Steps To Getting a Fee Waiver in Bankruptcy Court (Guide)
Written by Attorney Karra Kingston.
Updated April 22, 2022
If you can’t pay the filing fee, you may be able to get the filing fee waived, if you’re eligible, or pay the fee in installments after filing your bankruptcy case, once you’re protected by the automatic stay. Here we discuss the different fee-waiver forms you will need and how to fill them out.
Read More →If I tell the trustee I forgot to list a creditor will she reschedule my 341?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
In most cases, no. Although you can mention it during the 341 meeting. Trustees are usually concerned with assets that can be distributed to creditors, more than debts.
Read More →Does household of 1 mean just me?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
Yes, it does.
Read More →3 Things You Should Know About Bankruptcy Course 2
Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated September 3, 2020
Every individual seeking bankruptcy relief must complete two educational courses: The credit counseling course is completed before the bankruptcy petition is filed with the court. The second course, on the other hand, can’t be completed until after the case has been filed. Without completing both courses, a bankruptcy filer cannot get their bankruptcy discharge. Here are 3 things you should know about the personal financial management course, including how it's different from credit counseling.
Read More →How do I know if my fee is waived?
Written by Jonathan Petts.
Updated November 30, 2020
For the court filing fee, you'll get a notice in the mail that tells you if your fee is waived.
Read More →What To Bring To Your 341 Meeting Of Creditors
Written by Jonathan Petts.
Updated September 3, 2020
You should bring your ID and social security card.
Read More →When is the trustee meeting, also called my 341 meeting?
Written by Jonathan Petts.
Updated July 22, 2020
Your trustee meeting will take place between 21 and 40 days after you file for bankruptcy.
Read More →Where can I find my case number?
Written by Jonathan Petts.
Updated July 22, 2020
You can find your case number on your paperwork that you get back from the court after you file for bankruptcy.
Read More →Will someone show up in court against me?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
In virtually all Chapter 7 cases that do not involve expensive property, no creditors show up to court against you. It's very, very, very unlikely that anybody will show up in court against you.
Read More →How do I find out who my trustee is?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
You find out who your trustee is after you file your bankruptcy paperwork. You'll either learn right away from the court who your trustee is, or you'll get mail a few days later with your trustee's information.
Read More →I received a letter for a 341 meeting. What is this?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
A 341 meeting is the same as the meeting of the creditors. This is the meeting between you and the trustee who oversees your case. It usually takes place at your local court.
Read More →I received a letter for a Meeting of Creditors. What is this?
Written by Kristin Turner, Harvard Law Grad.
Updated July 22, 2020
Your meeting of creditors is the meeting that takes place at the court between you and your trustee. This is also known as a 341 meeting.
Read More →Will filing for Chapter 7 bankruptcy affect my spouse?
Written by Attorney Eva Bacevice.
Updated October 2, 2021
If you’re filing for Chapter 7 bankruptcy and your spouse is not, you may be wondering whether they are going to be affected. The short answer is that if your debts are separate, their credit will not be impacted.
Read More →Can I Amend My Bankruptcy Forms After I File?
Written by Attorney Jenni Klock Morel.
Updated December 1, 2023
If you make a mistake or accidentally leave information out of your bankruptcy forms, you can almost always amend them after you file. The trustee in your bankruptcy case may also ask you to file an amendment after meeting with you in your 341 meeting. Be sure to fill out the amended forms carefully with the correct information and follow any local court rules to submit the amended forms. Most amended forms don't require a filing fee.
Read More →What To Do If A Creditor Violates The Automatic Stay
Written by Attorney Andrea Wimmer.
Updated September 3, 2020
The automatic stay goes into effect as soon as your bankruptcy petition has been filed with the court and a case-number assigned to your case. The automatic stay prohibits creditors from trying to collect a debt from you. Creditors and their attorneys know that the bankruptcy court can order them to pay sanctions to the bankruptcy filer if they violate the automatic stay.
Read More →Why Is the Trustee Asking Creditors To File a Proof of Claim?
Written by Curtis Lee, JD.
Updated August 8, 2023
If your bankruptcy trustee is asking your creditors to file a proof of claim, it’s likely because the trustee discovered non-exempt assets in your case. Most Chapter 7 bankruptcy cases are no-asset cases. But if you have non-exempt property or assets, the trustee can liquidate or sell them. The funds from the sale are then used to repay your creditors at least part of what you owe. If a creditor wants to recover money through the liquidation process, they have to file paperwork called a proof of claim.
Read More →When Is Chapter 7 Bankruptcy Better Than Chapter 13 Bankruptcy?
Written by Attorney Eva Bacevice.
Updated July 27, 2023
Chapter 7 and Chapter 13 bankruptcy can both provide debt relief, but they have different timelines and eligibility requirements. People who have a lot of unsecured debt and don't make too much income to qualify often choose to file Chapter 7. People who make too much income to qualify for Chapter 7 or who own secured property like a home or car may file Chapter 13 instead.
Read More →How to File Chapter 7 with No Money?
Written by Attorney Andrea Wimmer.
Updated July 12, 2023
Even though there are bankruptcy fees in the form of court fees, credit counseling course fees, and attorneys fee, eligible filers can file their Chapter 7 bankruptcy for free.
Read More →Bankruptcy Case Dismissals & How To Avoid Them
Written by Attorney Andrea Wimmer.
Updated July 28, 2023
Many worry that their case won’t be accepted if they file bankruptcy without the help of a bankruptcy lawyer. Even though it’s scary to think that this may happen, it doesn’t really work that way. You are allowed to file bankruptcy without a lawyer. And, as long as you follow the bankruptcy court’s instructions and complete all required steps, the risk of having your case dismissed is actually pretty low.
Read More →I got my Chapter 7 discharge! Now what?
Written by Attorney Eva Bacevice.
Updated August 10, 2023
Monitor your credit report, stick to a budget, live within your means, rebuild your credit and live your life with a fresh start!
Read More →Creditor Calling After You File Bankruptcy? Do This.
Written by Attorney Andrea Wimmer.
Updated December 1, 2023
Creditors and debt collector aren't allowed to contact you after you file your bankruptcy case with the court. If a creditor contacts you anyway, it's usually by mistake. Answer the phone, tell them about your pending bankruptcy, and request that they stop calling. If they continue to contact you, let the court know right away, so they can put an end to it immediately and, if appropriate, punish the creditor for their conduct.
Read More →What To Do if the Trustee Says You Owe Money to the Estate
Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated July 28, 2023
If you own property that's not protected, or not fully protected, by exemptions, you may owe money to your bankruptcy estate. You can either pay the money into the estate and keep the property or asset, or you can surrender the property, keep the exempted amount, and not have to pay into the estate.
Read More →How To Pass the Chapter 7 Means Test
Written by Attorney Jenni Klock Morel.
Updated May 11, 2023
To qualify for Chapter 7 bankruptcy, you need to pass a means test. In the test, you compare your income with the median income of a similar size household in your state. If your income is lower, you pass the test. If it’s higher, you have to move on to the next step in the means test, which takes your expenses and disposable income into account.
Read More →What is a Bankruptcy Discharge?
Written by Attorney Jenni Klock Morel.
Updated August 8, 2023
The bankruptcy discharge is the order from the bankruptcy court that relieves the filer of the obligation to pay their discharged debts. It also prohibits creditors from ever trying to collect on that debt ever again. In other words, the discharge is a filer’s main goal in a bankruptcy, whether that’s a Chapter 7 bankruptcy or Chapter 13 bankruptcy. Let’s take a closer look at how this all works, what debts can’t be discharged, and what this all means for you.
Read More →Is Filing for Bankruptcy Worth It?
Written by the Upsolve Team.
Updated August 8, 2023
Filing bankruptcy gives you immediate protection from your creditors and a financial fresh start by wiping out certain debts like credit card debt, payday loans, and medical debt. If your wages are being garnished or credit card companies and payday lenders are harassing you to collect payments you can't afford to pay, filing bankruptcy may be the best way to get permanent relief. But if most of your debts are non-dischargeable, filing bankruptcy may not be worth it.
Read More →What Happens If I Declare Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated February 3, 2022
Overview of what to expect after declaring bankruptcy, including types of bankruptcy, the immediate debt relief benefits of filing bankruptcy, and important information about the Chapter 7 bankruptcy process.
Read More →Verification of Creditor Matrix Explained
Written by Attorney Andrea Wimmer.
Updated July 22, 2020
Learn about the verification of creditor matrix.
Read More →What Does a Bankruptcy Discharge Do?
Written by the Upsolve Team. Legally reviewed by Attorney Paige Hooper
Updated August 9, 2023
A bankruptcy discharge is a court order that wipes out certain debts like credit card debts and medical bills. Once you receive a discharge, you're no longer legally obligated to repay the debts that were discharged. Some debts, like those that are secured by collateral, can only be discharged if you give up the collateral. In Chapter 7 cases, dischargeable debts will be eliminated in a matter of months. In Chapter 13 cases, the filers must complete their 3-5 year payment plan before their dischargeable debts are eliminated.
Read More →Do I Need To Include My Spouse’s Income and Expenses on My Bankruptcy Forms?
Written by Attorney Paige Hooper.
Updated July 26, 2023
If you and your spouse are filing a joint bankruptcy, you have to include their income and expenses on all of the required bankruptcy forms. If you and your spouse live together, but your spouse isn’t filing bankruptcy with you, you still need to include their income and expenses on Schedules I and J and your Statement of Current Monthly Income.
Read More →How to Fix a Mistake on your Bankruptcy Forms After Filing
Written by Attorney Karra Kingston.
Updated December 9, 2021
When you file for bankruptcy and submit your forms you testify under oath that your forms are true and correct. If your bankruptcy forms have inaccuracies and you don’t fix your mistake, the Bankruptcy Court may assume that you’re purposely trying to hide information. Making an amendment to your forms is simple and shows the Court that you made a mistake.
Read More →Filing bankruptcy while self-employed
Written by Attorney Andrea Wimmer.
Updated August 26, 2020
Explore the two most typical ways individuals own businesses, and how it impacts your options when it comes to getting lasting debt relief through a personal Chapter 7 bankruptcy.
Read More →What Is the Presumption of Abuse in Bankruptcy?
Written by Curtis Lee, JD.
Updated June 1, 2022
You need to meet certain eligibility requirements to file Chapter 7 bankruptcy. If your income is higher than the median income for a similar-sized household in your state, this flags the bankruptcy court of a "presumption of abuse." This doesn't mean you can't file Chapter 7 or that you've abused the system. It does mean you must do more calculations as part of the means test to prove that you don't make enough money to repay your debts and that you aren't taking advantage of the bankruptcy process.
Read More →How To Update A Creditor’s Address After Filing
Written by Attorney Andrea Wimmer.
Updated October 6, 2020
If a creditor’s address is incorrect on the creditor matrix, the court’s notices to the creditor will be returned as undeliverable. Follow these steps to make sure this is corrected.
Read More →Can I file bankruptcy with my deceased spouse?
Written by Attorney Andrea Wimmer.
Updated July 22, 2020
No, you can't file bankruptcy jointly with your late spouse. But, you can (and should) make sure that all of their debts are listed on your schedules so any payment obligation you may have to the creditors can be discharged in as part of your case.
Read More →My children receive social security benefits. Do I include this as income in my bankruptcy?
Written by Attorney Andrea Wimmer.
Updated July 22, 2020
There are two locations in your bankruptcy forms where income has to be disclosed, the means test and your Schedule I. This article explores whether and when you should include social security benefits your child receives as part of your household income in your bankruptcy forms.
Read More →Discharge vs. Dismissal: What's the Difference?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 9, 2023
When filing bankruptcy for the first time, many people get confused about the different terms lawyers and courts use. Two words that frequently confuse first-time filers are “dismissed” and “discharged.” This article explains each term, what the differences are, and when lawyers and the court are most likely to use them when referring to your case.
Read More →Is It Legal To File a Second Bankruptcy Case?
Written by Attorney Jenni Klock Morel.
Updated August 1, 2023
You can file bankruptcy as many times as you need to, but you usually have to wait between filings. The waiting period depends on several factors, including whether the initial bankruptcy case was dismissed or discharged, what chapter you filed in the first case, and what chapter you plan to file in your second bankruptcy case.
Read More →What Does "The Automatic Stay Has Been Lifted" Mean?
Written by Attorney Eva Bacevice.
Updated July 20, 2023
The automatic stay is one of the main benefits of filing for bankruptcy. It provides the filer with immediate protection from their creditors, which means all collection calls have to stop, garnishments have to stop, and foreclosures can’t go forward. If the automatic stay is lifted, that means the bankruptcy filer loses all those protections.
Read More →What to do if your income increases after filing Chapter 7 bankruptcy
Written by Attorney Andrea Wimmer.
Updated July 26, 2023
The first thing you should do is give yourself a high five. Whether you found a new job or got a raise in your old job, getting paid more this week than last week is always a good thing! If you’re a few months into your case, then you don’t have to do anything. If it changed shortly after your case was filed, wait for the creditors’ meeting and let the trustee know during the meeting that your income has changed. Depending on how much it changed, they may say don’t worry about it or request that you file updated forms.
Read More →Objection to Discharge
Written by Attorney Andrea Wimmer.
Updated August 17, 2020
Although it doesn’t happen in most consumer cases, creditors have the ability to object to having their debt discharged. Some debts are not dischargeable by default. Others become non-dischargeable once a creditor objects and the court finds that cause exists to exclude a certain debt from being discharged. This article will explore why an unsecured creditor - like a credit card company or bank - would object to a discharge and how the process works.
Read More →Disability and Bankruptcy
Written by Attorney Paige Hooper.
Updated July 25, 2023
If you receive disability benefits, they could affect your bankruptcy in two ways. First, they can impact your monthly income calculation on some of your bankruptcy paperwork. Second, if you have disability benefits in a bank account when you file, you may need to use exemptions to protect and keep these funds. This article covers when and how to report disability benefits as income, and how to deal with any lump-sum disability payments you have on hand when you file a bankruptcy case.
Read More →What should I do if I don't perfectly remember my expenses?
Written by Attorney Andrea Wimmer.
Updated October 13, 2022
Do your best to estimate them and don't get too sidetracked by trying to be perfect. It can be tough to know exactly how much you’re spending on certain expenses. This is especially true if you have been cutting back on your regular living expenses while trying to stay afloat. This article explains some ways you can use to calculate your expenses for your bankruptcy forms.
Read More →How To Check The Status Of Your Fee Waiver Application
Written by Attorney Andrea Wimmer.
Updated February 10, 2021
Anyone who earns less than 150% of the federal poverty guidelines is eligible to apply for a fee waiver. But, that doesn’t automatically mean they will receive one. The judge decides whether to grant a fee waiver based on the information contained in the fee waiver application.
Read More →How Will Filing Bankruptcy Affect My Children?
Written by Lawyer John Coble.
Updated July 22, 2020
If you’re a parent, your children are the most important parts of your life. You don’t want to do anything that could harm their futures. If you’re considering bankruptcy, you may be worried about the impact this will have on your children. The good news is that for those who need to file bankruptcy, the positive impact on your family will far outweigh any inconveniences. This guide examines the issues that could impact your minor children.
Read More →Can I File Bankruptcy Without My Spouse?
Written by Attorney Eva Bacevice. Legally reviewed by Attorney Andrea Wimmer
Updated November 4, 2024
If you’re married, you can file bankruptcy without your spouse. But doing so doesn’t mean your spouse won’t be impacted. Before you choose whether to file individually or jointly, you’ll want to consider many factors, including what debts and assets you have together, whether you co-mingle your finances, and if there’s a prenuptial agreement.
Read More →What to do if you have to get something notarized for your bankruptcy case
Written by the Upsolve Team.
Updated July 22, 2020
While it’s not common in bankruptcy cases, there are occasions when a filer may be required to submit a document with a notarized signature. When a signature is notarized, the notary public has confirmed the identity of the person signing the document and made sure that the person is signing the document voluntarily.
Read More →Chapter 7 Document Checklist
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated November 11, 2020
Filing bankruptcy is a very document intensive process. In this article, we’ll look at what documents you’ll need to gather to ensure your case proceeds smoothly and without unnecessary complications.
Read More →Is the Money I Make From Self-Employment Considered Business Income, and How Will This Affect My Bankruptcy?
Written by the Upsolve Team. Legally reviewed by Lawyer John Coble
Updated October 12, 2022
If you're self-employed (as a sole proprietor, gig worker, or independent contractor) and you're struggling with business or personal debt, you can file personal bankruptcy like Chapter 7 or Chapter 13. If you have a separate business entity like an LLC or corporation, you also have the option to put your business into bankruptcy.
Read More →How To Calculate Your Income for Your Bankruptcy Forms if You’re Self-Employed
Written by the Upsolve Team.
Updated September 30, 2022
If you're self-employed, you probably don't get regular paycheck stubs. This can make it trickier to figure out your income, which you'll need to do to file for bankruptcy. You'll also want to know your business expenses, so you can calculate your net income. This article explains how to calculate your income if you're a sole proprietor, gig worker, or independent contractor.
Read More →What Happens After the 341 Meeting of Creditors?
Written by the Upsolve Team. Legally reviewed by Lawyer John Coble
Updated May 4, 2022
Completing your meeting of creditors is a milestone in the bankruptcy process. But you still need to finish your financial management course and submit your certificate of completion to the court (if you haven't already). You also have to wait for some court-required deadlines to pass and comply with any information requests from your trustee. Though it won't apply to every filer, if you have an installment payment plan for the court filing fee or you're entering into a reaffirmation agreement with a creditor, you'll need to follow up on those as well.
Read More →What Your Bank Statements Tell the Bankruptcy Trustee
Written by Attorney Karra Kingston.
Updated July 20, 2023
Even though it is not a formal requirement under the Bankruptcy Code, most Chapter 7 bankruptcy trustees ask filers to provide them with a copy of their bank account statement before the 341 meeting. Many ask for the statement that covers the filing date while some request several months of bank statements. Why are the trustees requesting this information? It’s not to see how much you spent on take-out last month or to judge you for buying your lunch at the QuickTrip by your work every day. Instead, they’re looking for information that may not be anywhere else on your bankruptcy forms. Let’s find out what that might be!
Read More →Will filing Chapter 7 bankruptcy help you? Consider this...
Written by Attorney Andrea Wimmer.
Updated July 30, 2020
Filing bankruptcy allows you to eliminate your debts - credit cards, car loans, bank loans, medical bills etc. While eliminating these payments will inevitably help your household budget, it won’t change the here and now. You’ll still be responsible for rent, utilities, insurance, groceries and really all other living expenses. Remember, filing bankruptcy does not change your income. If you made $0/mo. before filing your case, you’ll still be making $0/mo. afterwards.
Read More →What Is My Bankruptcy Discharge Date?
Written by the Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated August 9, 2023
The ultimate goal of bankruptcy is to get a discharge order, which wipes out debts like credit cards and medical bills. Along with your bankruptcy case number, keep your discharge date handy in case you’re contacted about a debt that was discharged.
Read More →My Bankruptcy Was Dismissed. What Happens Now?
Written by Attorney Kassandra Kuehl.
Updated August 1, 2023
Your bankruptcy case may be dismissed if you don't complete all your obligations as a bankruptcy filer under the Bankruptcy Code. This includes filing all your forms correctly and completely, doing your required credit counseling and debt management courses, and going to the 341 meeting with your trustee. If you file Chapter 13, you also need to stick with your approved repayment plan. If you don't do all this, you risk having your case dismissed.
Read More →Chapter 7 Bankruptcy Basics: Why & When is Property Liquidated?
Written by Attorney Kassandra Kuehl.
Updated August 11, 2020
A bankruptcy liquidation is the process by which a Chapter 7 bankruptcy trustee sells the filer’s assets to repay unsecured debts, such as credit cards, child support, or tax debt, as part of a bankruptcy filing. Let’s take a closer look at when a Chapter 7 case takes the form of a true “liquidation” bankruptcy.
Read More →What To Do About Debt Collection After a Bankruptcy Discharge
Written by Attorney Paige Hooper.
Updated August 25, 2023
A bankruptcy discharge order is a court order that stops creditors from ever being able to collect on dischargeable debts. Despite this powerful court order, some collection agencies or creditors try to collect on discharged debts, which is illegal. If you’re contacted about a discharged debt, tell the debt collector you filed bankruptcy and the debt was discharged. If a debt collector sues or threatens to sue for a discharged debt, respond by letting them know about your discharge. You may even be able to counter sue for damages.
Read More →Should I Tell Creditors I’m Going To File Bankruptcy?
Written by Attorney Paige Hooper.
Updated August 9, 2023
Some people believe telling their creditors they plan to file bankruptcy will stop collection efforts or help them settle their debt. This often isn’t the case though. Telling your creditors about a pending bankruptcy filing can have negative consequences like repossession or ramped-up collection efforts. Read this article to learn more about the pros and cons of telling your creditors that you plan to file bankruptcy.
Read More →Is It A Good Idea To Delay Filing Bankruptcy?
Written by Attorney Jenni Klock Morel.
Updated June 24, 2022
In a bankruptcy case, you'll list your income, debt, and property. If you've recently experienced changes to any of these, you may want to delay your filing to avoid negative consequences. Changes could include continuing to accumulate debt, a change in income, selling a piece of property, or getting an inheritance. Only you can decide the best time to file bankruptcy, but if you've experienced any of these or other events listed in this article, you may want to consider waiting to file so you can get the most out of your bankruptcy discharge.
Read More →Do I have to pay the $338 filing fee?
Written by Jonathan Petts.
Updated May 11, 2023
You generally have to pay the fee if you earn above 150% of the poverty line for your state, and you generally don't have to pay the fee if you earn below 150% of the poverty line.
Read More →What Is a Bankruptcy Audit?
Written by Attorney Paige Hooper.
Updated July 27, 2023
The majority of bankruptcy filers provide the most accurate financial information they can to the court and bankruptcy trustee. But incorrect information can still find its way to the bankruptcy proceeding. Most of the time, these mistakes are accidental, but sometimes they’re deliberate. To help find these mistakes, the U.S. Trustee Program hires outside auditing companies to conduct a detailed review of select bankruptcy petitions.
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