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Step 1
Calculate whether your median income is higher or lower than the average for your state. This can be done by visiting the Means Testing website listed in the resources section. If your income is below the median income average for your state, you are eligible to file Chapter 7 bankruptcy. However, if your income is higher, you likely cannot qualify under new bankruptcy laws.
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Step 2
File any overdue Internal Revenue Service or state tax returns, even if you cannot pay the taxes right away. This is a requirement to declare Chapter 7 bankruptcy.
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Step 3
Decide whether you want to hire a bankruptcy lawyer or try to file yourself. If your case is complex and you have assets such as equity in a house or a paid-for vehicle, it is usually best to hire a reputable attorney.
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Step 4
Participate in a credit counseling session and budget analysis with an approved provider, whether or not you secure an attorney for your Chapter 7 bankruptcy case. This is mandatory under new bankruptcy laws.
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Step 5
File all required Chapter 7 bankruptcy papers and your credit counseling certificate with the appropriate United States Bankruptcy Court, or have an attorney prepare the documents for you. The link to information and forms is listed in the Resources section.
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Step 6
Attend your 341 hearing at the local bankruptcy courthouse. This is a meeting where your creditors can object to your bankruptcy, though they rarely do in most cases. You will receive a notice of the 341 hearing, usually held 20 to 40 days after your Chapter 7 bankruptcy petition is filed. If no one objects to your case, the judge will grant your bankruptcy about two months after the hearing.
