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Chapter 7 Bankruptcy: Frequently Asked Questions
Straight answers to the questions people ask most before filing Chapter 7 online.
Who qualifies for Chapter 7?
Most people qualify if their household income is below their state's median for their household size. If it's above, a second "disposable income" calculation may still let you qualify. Completing the means test is how you confirm eligibility.
What does it cost to file Chapter 7?
The court filing fee is $338, which you can pay in up to four installments — or have waived if your income is under 150% of the federal poverty line. On top of that, do-it-yourself software is a low one-time cost, far less than the $1,000–$2,000+ a typical attorney charges.
Can I really file without a lawyer?
Yes. Filing on your own is called filing "pro se," and it's legal and common for straightforward, no-asset cases. Guided software reduces the risk of the mistakes that cause cases to be delayed or dismissed. Complex cases are still better handled by an attorney.
Which debts get wiped out?
Chapter 7 discharges most unsecured debts: credit cards, medical bills, personal and payday loans, and many old collections. Some debts generally cannot be discharged — most student loans, child support, alimony, court fines, and recent income taxes.
Will I lose my house or car?
Often no. Bankruptcy exemptions protect a certain amount of equity in your home, vehicle, and personal property. Exemption amounts vary by state, and if you're current on secured loans you can frequently keep the property by continuing to pay. Cases with lots of non-exempt equity are where an attorney's advice matters most.
How does emergency filing stop collections?
The moment your petition is filed, the automatic stay takes effect and most creditors must stop garnishments, foreclosure sales, repossessions, and collection calls. If you're up against a deadline, an emergency "skeleton" filing can trigger the stay immediately.
How long does the whole process take?
A typical no-asset Chapter 7 case wraps up in about three to four months from filing to discharge.
How will Chapter 7 affect my credit?
A Chapter 7 filing can stay on your credit report for up to 10 years, but many filers see their scores begin recovering within a year or two as they rebuild — especially once high-balance debts are gone.
Do I have to take classes?
Yes — two short courses: credit counseling before you file, and a debtor education (financial management) course after filing. Both can be completed online.
Educational information only, not legal advice. We are not a law firm or bankruptcy petition preparer. Laws and exemption amounts vary by state and change over time; verify details for your district or consult a licensed attorney.