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Last reviewed against primary sources: June 23, 2026
Do You Qualify?
Eligibility Checklist
- Your 6-month average gross household income is below your state's median family income for your household size (Form 122A-1; U.S. Trustee) — or you pass the Form 122A-2 calculation if above median
- You have completed, or are willing to complete, the required credit counseling briefing within 180 days before filing (uscourts.gov)
- You have not received a Chapter 7 discharge within the prior 8 years (uscourts.gov)
- You carry primarily unsecured debts — such as credit cards, medical bills, or personal loans — that the Code treats as dischargeable
- You can identify the correct exemption set under the 730-day domicile rule (§522(b)(3)) and your key property would be protected by it
- You are prepared to attend the 341 meeting of creditors and answer the trustee's questions under oath (uscourts.gov)
- You are able to pay the $338 filing fee, request installment payments, or qualify for a fee waiver (cacb.uscourts.gov)
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Get Your Free Case ReviewChapter 7 vs. Chapter 13 in Brief
Chapter 7 and Chapter 13 solve different problems. According to the U.S. Courts (uscourts.gov), Chapter 7 is a liquidation that can discharge unsecured debt quickly but cannot cure mortgage arrears — it can only discharge debt, not let you catch up on missed payments to keep a home. Chapter 13 is a reorganization: the debtor repays creditors through a court-approved plan lasting 3 years (for filers below the state median) or 5 years (for filers above it), and that structure can cure mortgage arrears over time and protect non-exempt assets the debtor wants to keep.
As a general matter, filers who are above-median on the means test, who have significant non-exempt assets, or who carry priority debt they must pay over time tend toward Chapter 13, while below-median filers with little non-exempt property tend toward Chapter 7 (uscourts.gov). The right chapter is a fact-specific legal judgment; People's Justice can connect you with an attorney who will weigh both against your circumstances.
Injured? Get a free Chapter 7 Bankruptcy case review.
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Get Your Free Case ReviewIn-Depth Guides
The 341 Meeting and the Trustee
The 341 meeting of creditors is run by your trustee — not a judge — and is typically held 20 to 40 days after filing (uscourts.gov). The trustee places you under oath and asks about your petition and finances. Most consumer meetings are short, and creditors rarely attend. This is general information, not legal advice.
Read guideWhat Bankruptcy Can and Can't Discharge
Chapter 7 discharges most unsecured debts like credit cards and medical bills, but the Bankruptcy Code lists debts that survive: most recent taxes, domestic support, most student loans (absent an undue-hardship adversary proceeding), and fraud debts (uscourts.gov). Liens on secured property can survive discharge. This is general information, not legal advice.
Read guideExemptions and the 730-Day Rule
Exemptions decide what property you keep in Chapter 7. The 730-day domicile rule (§522(b)(3)) determines which state's exemptions apply. Texas and Florida offer an unlimited homestead exemption (with acreage and time caveats); California debtors choose System 1 (CCP §704) or System 2 (CCP §703). This is general information, not legal advice.
Read guideLife After Chapter 7: Rebuilding Credit
After discharge — typically about 90 to 100 days after filing for a no-asset case (uscourts.gov) — the automatic stay ends and the fresh start begins. A Chapter 7 discharge is available once every 8 years (uscourts.gov), and a filing affects credit for years. This is general information, not legal advice.
Read guideThe Means Test, Explained
The means test compares your 6-month average gross household income to your state's median for your household size (Form 122A-1; U.S. Trustee). Below median means Chapter 7 is generally available; above median triggers the longer Form 122A-2 calculation. Median tables are effective April 1, 2026 (UST). This is general information, not legal advice.
Read guideExplore This Litigation
Chapter 7 Bankruptcy Tracker
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View trackerBankruptcy Exemption Estimator
Estimate which property you may be able to protect in bankruptcy using federal or state exemptions. This tool offers an educational estimate of common exemption categories — it is not legal advice, and exemption amounts change over time.
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Sources & References
- Chapter 7 — Bankruptcy Basics — U.S. Courts (uscourts.gov) [Link]
- Means Testing — current and historical median income data and Form 122A guidance — U.S. Trustee Program (justice.gov/ust) [Link]
- Bankruptcy filing fees — Chapter 7 fee of $338 — U.S. Bankruptcy Court, Central District of California (cacb.uscourts.gov) [Link]
- Chapter 13 — Bankruptcy Basics (plan length 3 or 5 years; curing arrears) — U.S. Courts (uscourts.gov) [Link]