-
Step 1
Check to make sure you are even eligible to file Chapter 7 bankruptcy before planning to use this debt solution. Filers must pass a federal means test (see Resources). Those who make too much money and cannot pass the test will be required to pursue at least partial debt repayment through Chapter 13 bankruptcy.
-
Step 2
Gather your income documents when preparing to file Chapter 7. You will need to provide your last three federal tax returns, about six months worth of paycheck stubs if this applies to your case, and several recent banking account statements.
-
Step 3
Write down a list of all your debts. You may want to get a credit report (see Resources) to help you do this. You also need to include any obligations not listed on your credit files, such as electric bills, cable television fees or daycare costs.
-
Step 4
Write a list of your assets. Be sure to mention any retirement accounts you might have, though these cannot be taken in any kind of bankruptcy proceeding.
-
Step 5
Register for an approved credit counseling session (see Resources). Complete this course in order to file your Chapter 7 papers.
-
Step 6
Decide whether you want to file bankruptcy on your own by downloading and printing papers from the United States Bankruptcy Court. The fee is $274 as of 2009. You could also elect to hire a bankruptcy attorney to handle your case. Once your papers are filed, no creditor can legally contact or sue you. It should take anywhere from four to eight months to complete your Chapter 7 bankruptcy case.
