How to file bankruptcy chapter is one of the most searched legal questions in the United States as household debt, medical costs, and high interest rates continue to pressure family finances.
In 2026, U.S. bankruptcy courts operate under the same federal Bankruptcy Code, with fully electronic filing systems and nationwide procedures. The process is standardized, but every detail must be completed correctly to receive legal protection and debt discharge. This guide explains, in clear terms, how to file bankruptcy chapter under current U.S. law, focusing on the steps individuals must follow today.
Table of Contents
What “Bankruptcy Chapter” Means
The term “bankruptcy chapter” refers to sections of the U.S. Bankruptcy Code. For individuals, the most commonly filed are:
- Chapter 7 – Liquidation bankruptcy
- Chapter 13 – Court-supervised repayment plan
- Chapter 11 – Reorganization, usually for businesses and high-debt individuals
Most people searching how to file bankruptcy chapter are deciding between Chapter 7 and Chapter 13.
Step 1: Confirm Which Chapter You Qualify For
Eligibility depends on income, debt, and assets.
Chapter 7
- Requires passing the Means Test
- Compares household income to your state median
- Allows discharge of most unsecured debts
Chapter 13
- Requires steady income
- Involves a 3- to 5-year repayment plan
- Used to stop foreclosure and catch up on missed payments
Step 2: Complete Mandatory Credit Counseling
Before filing, you must:
- Take a credit counseling course from an approved provider
- Complete it within 180 days of filing
- File the completion certificate with the court
Without this, the case is automatically dismissed.
Step 3: Gather Required Financial Records
You must prepare accurate documentation, including:
- Recent tax returns
- Proof of income
- Bank statements
- Lists of all debts
- Property and vehicle records
- Monthly expense details
Every figure must be truthful and complete.
Step 4: Prepare Bankruptcy Forms
You must complete:
- Voluntary Petition
- Schedules listing assets, debts, income, and expenses
- Statement of Financial Affairs
- Means Test forms (Chapter 7)
- Repayment plan (Chapter 13)
All forms are filed electronically in 2026.
Step 5: Pay Filing Fees
Current federal filing fees:
| Chapter | Fee |
|---|---|
| Chapter 7 | $338 |
| Chapter 13 | $313 |
| Chapter 11 | $1,738 |
Fee waivers may be available for low-income Chapter 7 filers. Installment payments require court approval.
Step 6: File the Case With the Bankruptcy Court
Once the petition is submitted:
- The automatic stay begins immediately
- Collection calls, lawsuits, and garnishments stop
- Foreclosures and repossessions are temporarily halted
- A trustee is assigned to your case
This legal protection starts the moment your case is filed.
Step 7: Attend the 341 Meeting of Creditors
All filers must attend:
- Conducted by a trustee, not a judge
- Usually held by video or phone
- Identity verification is required
- Creditors may ask limited questions
Failure to attend results in dismissal.
Step 8: Complete the Debtor Education Course
After filing, you must:
- Take a financial management course
- File the certificate with the court
- Complete it before discharge is granted
Step 9: Chapter-Specific Requirements
Chapter 7
- Trustee reviews assets
- Non-exempt property may be sold
- Most unsecured debts discharged within months
Chapter 13
- Court confirms a repayment plan
- Monthly payments go to a trustee
- Remaining eligible debt discharged after plan completion
Step 10: Receive the Discharge Order
A discharge eliminates qualifying debts such as:
- Credit cards
- Medical bills
- Personal loans
- Utility balances
Debts that usually survive bankruptcy include:
- Child support and alimony
- Most student loans
- Recent taxes
- Criminal fines
Legal Protections Provided
When learning how to file bankruptcy chapter, it is essential to understand the protections you gain:
- Immediate stop to collection activity
- Suspension of wage garnishments
- Temporary halt to foreclosure and eviction actions
- Protection from utility shutoff in many cases
These rights apply nationwide under federal law.
Common Filing Errors
Cases are often dismissed for:
- Missing counseling certificates
- Incomplete schedules
- Failure to attend the 341 meeting
- Incorrect income reporting
- Undisclosed assets
Accuracy is critical at every stage.
Attorney Representation
While self-filing is legal, bankruptcy law is technical. Errors can lead to:
- Loss of property
- Case dismissal
- Denial of discharge
- Long-term legal consequences
Chapter 13 cases, in particular, are difficult to complete without legal guidance.
Life After Bankruptcy
After discharge:
- Credit reports reflect the filing for 7 to 10 years
- New credit can be rebuilt gradually
- Mortgage eligibility may return after waiting periods
- Financial stability improves with proper budgeting
Understanding how to file bankruptcy chapter allows individuals to use the law as a structured path to financial recovery rather than a last-resort crisis.
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