-
Notifications
You must be signed in to change notification settings - Fork 0
Expand file tree
/
Copy pathchapter-7.html
More file actions
678 lines (627 loc) · 35.6 KB
/
Copy pathchapter-7.html
File metadata and controls
678 lines (627 loc) · 35.6 KB
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
639
640
641
642
643
644
645
646
647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
665
666
667
668
669
670
671
672
673
674
675
676
677
678
<!DOCTYPE html>
<html lang="en">
<head>
<!-- Google tag (gtag.js) -->
<link rel="preconnect" href="https://www.googletagmanager.com">
<link rel="preconnect" href="https://www.googletagmanager.com">
<script async src="https://www.googletagmanager.com/gtag/js?id=G-FTWLM223G7"></script>
<script>
window.dataLayer = window.dataLayer || [];
function gtag(){dataLayer.push(arguments);}
gtag('js', new Date());
gtag('set', 'allow_ad_personalization_signals', false);
gtag('config', 'G-FTWLM223G7');
gtag('config', 'G-053Z64N82F');
</script>
<script>
document.addEventListener('click', function(e) {
var link = e.target.closest('a[href*="uscourts.gov"]');
if (link) {
gtag('event', 'outbound_click', {
event_category: 'credential_verification',
event_label: link.href,
page_path: location.pathname,
transport_type: 'beacon'
});
}
});
</script>
<meta charset="UTF-8">
<link rel="icon" type="image/svg+xml" href="/favicon.svg">
<meta name="viewport" content="width=device-width, initial-scale=1.0">
<title>Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start</title>
<meta name="description" content="Plain-English Chapter 7 bankruptcy guide. Who qualifies, what the means test is, what gets discharged, exempt property, and how the 727(a)(8) discharge bar works.">
<meta name="keywords" content="chapter 7 bankruptcy, liquidation bankruptcy, means test, bankruptcy discharge, exempt property, 727(a)(8), fresh start, bankruptcy explained">
<link rel="canonical" href="https://1328f.com/chapter-7.html">
<meta property="og:title" content="Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start">
<meta property="og:description" content="What Chapter 7 bankruptcy is, who qualifies, what happens to your property, and how discharge works. Plain English, no jargon.">
<meta property="og:type" content="article">
<meta property="og:url" content="https://1328f.com/chapter-7.html">
<meta property="og:image" content="https://1328f.com/og-image.png">
<meta property="og:site_name" content="1328f.com">
<meta name="twitter:card" content="summary">
<meta name="twitter:title" content="Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start">
<meta name="twitter:description" content="What Chapter 7 bankruptcy is, who qualifies, and how discharge works.">
<meta name="twitter:image" content="https://1328f.com/og-image.png">
<script type="application/ld+json">
{
"@context": "https://schema.org",
"@type": "FAQPage",
"mainEntity": [
{
"@type": "Question",
"name": "What is Chapter 7 bankruptcy?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Chapter 7 is a form of bankruptcy that eliminates most unsecured debts -- credit cards, medical bills, personal loans -- in exchange for the potential liquidation of non-exempt assets. A court-appointed trustee reviews your property, sells anything that is not protected by exemptions, and distributes the proceeds to creditors. In practice, most Chapter 7 cases are 'no-asset' cases where the debtor keeps everything because all property falls within exemptions. The process typically takes about 4 months from filing to discharge."
}
},
{
"@type": "Question",
"name": "Do I qualify for Chapter 7 bankruptcy?",
"acceptedAnswer": {
"@type": "Answer",
"text": "To file Chapter 7, you must pass the means test under 11 U.S.C. Section 707(b). The test compares your household income to the median income for your state and household size. If your income is below the median, you qualify automatically. If it is above the median, a second calculation deducts allowed expenses. If the remaining disposable income is too high, the court may dismiss the case or require you to file Chapter 13 instead. The means test applies to individuals, not businesses."
}
},
{
"@type": "Question",
"name": "How long after Chapter 7 can I file bankruptcy again?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Under 11 U.S.C. Section 727(a)(8), you must wait 8 years from the filing date of a prior Chapter 7 or Chapter 11 case before receiving another Chapter 7 discharge. If you want to file Chapter 13 instead, the waiting period is 4 years under Section 1328(f). These periods are measured from filing date to filing date, not from discharge date. Filing before the window expires means you can go through the entire process and receive no discharge at the end."
}
}
]
}
</script>
<style>
:root {
--bg: #0d1117;
--surface: #161b22;
--border: #30363d;
--text: #e6edf3;
--text-muted: #9eaab6;
--accent: #58a6ff;
--green: #3fb950;
--red: #f85149;
--yellow: #e3a835;
}
* { margin: 0; padding: 0; box-sizing: border-box; }
body {
font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Helvetica, Arial, sans-serif;
background: var(--bg);
color: var(--text);
line-height: 1.7;
padding: 0 20px;
}
.container {
max-width: 760px;
margin: 0 auto;
padding: 40px 0 80px;
}
.breadcrumb {
font-size: 14px;
color: var(--text-muted);
margin-bottom: 24px;
}
.breadcrumb a { color: var(--accent); text-decoration: none; }
.breadcrumb a:hover { text-decoration: underline; }
h1 {
font-size: 28px;
margin-bottom: 12px;
line-height: 1.3;
}
.subtitle {
font-size: 17px;
color: var(--text-muted);
margin-bottom: 32px;
line-height: 1.6;
}
h2 {
font-size: 21px;
margin: 32px 0 12px;
padding-bottom: 8px;
border-bottom: 1px solid var(--border);
}
p { margin: 12px 0; }
a { color: var(--accent); text-decoration: none; }
a:hover { text-decoration: underline; }
ul, ol {
margin: 12px 0 12px 24px;
}
li { margin-bottom: 8px; }
.statute-box {
background: var(--surface);
border: 1px solid var(--border);
border-radius: 6px;
padding: 16px 20px;
margin: 20px 0;
}
.statute-box .label {
font-size: 13px;
font-weight: 600;
color: var(--accent);
text-transform: uppercase;
margin-bottom: 8px;
}
.red-box {
background: rgba(248,81,73,0.08);
border: 1px solid rgba(248,81,73,0.3);
border-radius: 6px;
padding: 16px 20px;
margin: 20px 0;
}
.red-box .label {
font-size: 13px;
font-weight: 600;
color: var(--red);
text-transform: uppercase;
margin-bottom: 8px;
}
.warning-box {
background: rgba(210,153,34,0.08);
border: 1px solid rgba(210,153,34,0.3);
border-radius: 6px;
padding: 16px 20px;
margin: 20px 0;
}
.warning-box .label {
font-size: 13px;
font-weight: 600;
color: var(--yellow);
text-transform: uppercase;
margin-bottom: 8px;
}
.cta-box {
background: var(--surface);
border: 1px solid var(--border);
border-radius: 6px;
padding: 20px 24px;
margin: 32px 0;
text-align: center;
}
.cta-box a.btn {
display: inline-block;
margin-top: 12px;
padding: 10px 24px;
background: var(--accent);
color: #fff;
border-radius: 6px;
font-weight: 600;
text-decoration: none;
}
.cta-box a.btn:hover { opacity: 0.9; text-decoration: none; }
table {
width: 100%;
border-collapse: collapse;
margin: 16px 0;
font-size: 14px;
}
th, td {
padding: 10px 14px;
border: 1px solid var(--border);
text-align: left;
}
th {
background: var(--surface);
font-weight: 600;
font-size: 13px;
text-transform: uppercase;
color: var(--text-muted);
}
.check-icon { color: var(--green); }
.x-icon { color: var(--red); }
.chapter-nav {
background: var(--surface);
border: 1px solid var(--border);
border-radius: 6px;
padding: 16px 20px;
margin: 40px 0 0;
}
.chapter-nav p {
color: var(--text-muted);
font-size: 13px;
margin-bottom: 10px;
font-weight: 600;
text-transform: uppercase;
}
.chapter-nav-links {
display: flex;
flex-wrap: wrap;
gap: 8px;
}
.chapter-nav-links a {
display: inline-block;
padding: 6px 14px;
background: #21262d;
border: 1px solid var(--border);
border-radius: 4px;
font-size: 14px;
color: var(--text-muted);
text-decoration: none;
}
.chapter-nav-links a:hover { color: var(--accent); border-color: var(--accent); text-decoration: none; }
.chapter-nav-links a.current { color: var(--accent); border-color: var(--accent); }
.footer {
margin-top: 64px;
padding-top: 24px;
border-top: 1px solid var(--border);
font-size: 13px;
color: var(--text-muted);
}
.footer a { color: var(--accent); }
@media (max-width: 600px) {
h1 { font-size: 24px; }
h2 { font-size: 19px; }
.container { padding: 24px 0 60px; }
table { font-size: 13px; }
th, td { padding: 8px 10px; }
}
</style>
<meta name="last-modified" content="2026-05-01">
<script type="application/ld+json">
{
"@context": "https://schema.org",
"@type": "BreadcrumbList",
"itemListElement": [
{
"@type": "ListItem",
"position": 1,
"name": "Screener",
"item": "https://1328f.com/"
},
{
"@type": "ListItem",
"position": 2,
"name": "Chapter 7",
"item": "https://1328f.com/chapter-7.html"
}
]
}
</script>
<link rel="sitemap" type="application/xml" href="/sitemap.xml">
<script type="application/ld+json">
{"@context": "https://schema.org", "@type": "Organization", "name": "Open Bankruptcy Project", "url": "https://1328f.org", "description": "Free, open-source bankruptcy court transparency tools and research.", "foundingDate": "2026-03-27", "areaServed": "US", "nonprofitStatus": "Nonprofit501c3", "sameAs": ["https://1328f.com", "https://1328f.org"]}
</script>
<script type="application/ld+json">
{
"@context": "https://schema.org",
"@graph": [
{
"@type": "Article",
"headline": "Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start",
"description": "Plain-English Chapter 7 bankruptcy guide. Who qualifies, what the means test is, what gets discharged, exempt property, and how the 727(a)(8) discharge bar work",
"author": {
"@type": "Organization",
"name": "Open Bankruptcy Project"
},
"publisher": {
"@type": "Organization",
"name": "Open Bankruptcy Project",
"url": "https://1328f.org"
},
"datePublished": "2026-03-28",
"dateModified": "2026-05-01",
"mainEntityOfPage": "https://1328f.com/chapter-7.html"
},
{
"@type": "HowTo",
"name": "Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start",
"step": [
{
"@type": "HowToStep",
"position": 1,
"text": "window.dataLayer = window.dataLayer || [];\n function gtag(){dataLayer.push(arguments);}\n gtag('js', new Date());\n gtag('config', 'G-FTWLM223G7');\n\n\ndocument.addEventListener('click', function(e) {\n"
},
{
"@type": "HowToStep",
"position": 2,
"text": "Expense calculation. If your income is above the median, the test deducts certain allowed expenses. If your remaining disposable income is below a threshold, you still qualify. If it is too high, the "
},
{
"@type": "HowToStep",
"position": 3,
"text": "Credit card balances"
},
{
"@type": "HowToStep",
"position": 4,
"text": "Medical bills"
},
{
"@type": "HowToStep",
"position": 5,
"text": "Personal loans"
},
{
"@type": "HowToStep",
"position": 6,
"text": "Past-due utility bills"
},
{
"@type": "HowToStep",
"position": 7,
"text": "Deficiency balances after repossession or foreclosure"
},
{
"@type": "HowToStep",
"position": 8,
"text": "Most lawsuit judgments"
},
{
"@type": "HowToStep",
"position": 9,
"text": "Student loans -- unless you prove undue hardship (rare)"
},
{
"@type": "HowToStep",
"position": 10,
"text": "Child support and alimony -- domestic support obligations are never dischargeable"
}
]
},
{
"@type": "WebPage",
"name": "Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start",
"url": "https://1328f.com/chapter-7.html",
"speakable": {
"@type": "SpeakableSpecification",
"cssSelector": [
".quick-answer",
"h1",
".summary",
"p:first-of-type"
]
}
}
]
}
</script>
</head>
<body>
<style>
#site-nav{background:#0d1117;border-bottom:1px solid #30363d;padding:0.5rem 1rem;text-align:center;font-size:0.78rem;line-height:1.9}
#site-nav a{margin:0 0.3rem}
#site-nav .sep{color:#30363d;margin:0 0.25rem}
#site-nav .nav-label{color:#f0f6fc;margin:0 0.4rem;font-weight:700}
#site-nav .nav-label:first-child{margin-right:0.4rem}
.nav-toggle{display:none;background:none;border:1px solid #30363d;color:#c9d1d9;font-size:1.2rem;padding:0.4rem 0.75rem;border-radius:4px;cursor:pointer;line-height:1}
.nav-toggle:focus-visible{outline:2px solid #58a6ff;outline-offset:2px}
.nav-links{display:inline}
@media(max-width:768px){
.nav-toggle{display:inline-block;margin:0.25rem 0}
.nav-links{display:none;text-align:left;padding:0.5rem 0}
.nav-links.open{display:block}
.nav-links a{display:block;padding:0.6rem 1rem;margin:0;font-size:0.9rem;min-height:44px;line-height:1.6;border-bottom:1px solid #21262d}
.nav-links a:hover,.nav-links a:focus{background:#161b22}
.nav-links .sep{display:none}
.nav-links br{display:none}
.nav-links .nav-label{display:block;padding:0.5rem 1rem 0.2rem;font-size:0.75rem;text-transform:uppercase;letter-spacing:0.05em;color:#9eaab6;margin:0}
}
</style>
<nav id="site-nav" aria-label="Site navigation">
<button class="nav-toggle" aria-expanded="false" aria-controls="nav-links" aria-label="Toggle navigation menu">☰ Menu</button>
<div class="nav-links" id="nav-links">
<strong class="nav-label">Tools:</strong>
<a href="check.html">Eligibility Checker</a>
<a href="compare.html">Compare All Bars</a>
<a href="dashboard.html">Dashboard</a>
<a href="timeline.html">Timeline</a>
<span class="sep">|</span>
<strong class="nav-label">Learn:</strong>
<a href="explainer.html">1328(f) Explained</a>
<a href="discharge-bar.html">Discharge Bar</a>
<a href="727a8-discharge-bar.html">727(a)(8) Bar</a>
<a href="109g-filing-bar.html">109(g) Bar</a>
<a href="can-i-file-bankruptcy-again.html">Can I File Again?</a>
<a href="how-long-between-bankruptcies.html">How Long Between?</a>
<span class="sep">|</span>
<a href="chapter-7.html">Ch. 7</a>
<a href="chapter-11.html">Ch. 11</a>
<a href="chapter-12.html">Ch. 12</a>
<a href="chapter-13.html">Ch. 13</a>
<span class="sep">|</span>
<strong class="nav-label">Statutes:</strong>
<a href="section-362-automatic-stay.html">§362</a>
<a href="section-506-secured-claims.html">§506</a>
<a href="section-523-nondischargeable-debts.html">§523</a>
<a href="section-727-chapter-7-discharge.html">§727</a>
<a href="section-1325-plan-confirmation.html">§1325</a>
<a href="section-341-meeting-of-creditors.html">§341</a>
<a href="section-524-discharge-injunction.html">§524</a>
<a href="section-547-preferences.html">§547</a>
<a href="section-548-fraudulent-transfers.html">§548</a>
<a href="section-707-chapter-7-dismissal.html">§707</a>
<a href="section-1141-chapter-11-discharge.html">§1141</a>
<a href="section-1322-plan-contents.html">§1322</a>
<br>
<strong class="nav-label">Browse:</strong> <a href="/districts/">Districts</a>
<a href="/states/">States</a>
<a href="/judges/">Judges</a>
<span class="sep">|</span>
<strong class="nav-label">Data:</strong>
<a href="chapter-13-failure-rate.html">Failure Rates</a>
<a href="chapter-13-success-rate-by-state.html">Success by State</a>
<a href="caselaw.html">Case Law</a>
<span class="sep">|</span>
<strong class="nav-label">For:</strong>
<a href="for-debtors.html">Debtors</a>
<a href="for-attorneys.html">Attorneys</a>
<a href="for-trustees.html">Trustees</a>
<a href="for-judges.html">Judges</a>
<a href="for-researchers.html">Researchers</a>
<span class="sep">|</span>
<a href="glossary.html">Glossary</a>
<a href="before-you-file.html">Before You File</a>
<a href="reading.html">Reading List</a>
<a href="bankruptcy-myths.html">Myths</a>
<a href="bankruptcy-concealment.html">Concealment</a>
<span class="sep">|</span>
<a href="https://1328f.org/support/" style="color:#238636;font-weight:600">Support This Research</a>
</div>
</nav>
<script>document.addEventListener('DOMContentLoaded',function(){var b=document.querySelector('.nav-toggle');if(b)b.addEventListener('click',function(){var l=document.querySelector('.nav-links');l.classList.toggle('open');b.setAttribute('aria-expanded',l.classList.contains('open'))})});</script>
<div style="background:linear-gradient(135deg,#0d2137,#122a44);border:1px solid #1f4068;border-radius:6px;padding:0.6rem 1.2rem;margin:1rem auto;max-width:900px;text-align:center;display:flex;align-items:center;justify-content:center;gap:0.75rem;flex-wrap:wrap">
<svg width="18" height="18" viewbox="0 0 20 20" fill="none" style="flex-shrink:0"><path d="M10 1l2.39 4.84L18 6.71l-4 3.9.94 5.5L10 13.77 5.06 16.1 6 10.6 2 6.71l5.61-.87L10 1z" fill="#f0c14b"></path></svg>
<span style="color:#f0f6fc;font-size:0.85rem"><strong>Cited by the federal judiciary</strong> — This tool's data was accepted by the Advisory Committee on Bankruptcy Rules as <a href="https://www.uscourts.gov/forms-rules/records-rules-committees/suggestions/dan-brown-26-bk-3" style="color:#58a6ff">Suggestion 26-BK-3</a> and <a href="https://www.uscourts.gov/forms-rules/records-rules-committees/suggestions/dan-brown-26-bk-5" style="color:#58a6ff">Suggestion 26-BK-5</a></span>
</div>
<div style="background:#161b22;border:1px solid #30363d;border-radius:6px;padding:0.6rem 1.2rem;margin:0 auto 1rem;max-width:900px;text-align:center;font-size:0.85rem;color:#9eaab6">
This analysis is backed by <strong style="color:#e6edf3">5.1 million federal bankruptcy cases</strong>. <a href="/check.html" style="color:#58a6ff">Check your eligibility</a> or <a href="/dashboard.html" style="color:#58a6ff">explore the data</a>.
</div>
<div class="container">
<div class="breadcrumb">
<a href="index.html">Screener</a> / <a href="glossary.html">Glossary</a> / Chapter 7
</div>
<h1>Chapter 7 Bankruptcy Explained: Liquidation and Fresh Start</h1>
<p class="subtitle">Chapter 7 is the most common form of consumer bankruptcy. It eliminates most unsecured debts in about four months -- but you may have to give up certain property.</p>
<h2>What Chapter 7 is</h2>
<p>Chapter 7 is a liquidation bankruptcy governed by <a href="https://www.law.cornell.edu/uscode/text/11/chapter-7">11 U.S.C. Chapter 7</a>. When you file, a court-appointed trustee reviews your assets, sells anything that is not protected by exemptions, and uses the proceeds to pay creditors. Once the process is complete, most remaining unsecured debts are wiped out through a discharge.</p>
<p>In practice, the vast majority of Chapter 7 cases are "no-asset" cases. That means the trustee finds nothing worth selling because everything the debtor owns falls within the allowed exemptions. The debtor keeps all of their property and still receives a discharge.</p>
<h2>Who qualifies: the means test</h2>
<p>Not everyone can file Chapter 7. Under <a href="https://www.law.cornell.edu/uscode/text/11/707">11 U.S.C. Section 707(b)</a>, individual debtors must pass a <a href="https://meanstest.org" title="Bankruptcy Means Test -- Open Bankruptcy Project" target="_blank" rel="noopener">means test</a> that was added by BAPCPA in 2005.</p>
<p>The <a href="https://meanstest.org" title="Bankruptcy Means Test -- Open Bankruptcy Project" target="_blank" rel="noopener">means test</a> works in two steps:</p>
<ol>
<li><strong>Income comparison.</strong> Your current monthly income (averaged over the 6 months before filing) is compared to the median household income for your state and household size. If you are below the median, you pass automatically.</li>
<li><strong>Expense calculation.</strong> If your income is above the median, the test deducts certain allowed expenses. If your remaining disposable income is below a threshold, you still qualify. If it is too high, the court may dismiss the case or convert it to Chapter 13.</li>
</ol>
<div class="statute-box">
<div class="label">Business filers</div>
<p>The <a href="https://meanstest.org" title="Bankruptcy Means Test -- Open Bankruptcy Project" target="_blank" rel="noopener">means test</a> applies only to individuals with primarily consumer debts. Business entities (corporations, LLCs) can file Chapter 7 without a <a href="https://meanstest.org" title="Bankruptcy Means Test -- Open Bankruptcy Project" target="_blank" rel="noopener">means test</a>, but they do not receive a discharge -- the entity is simply liquidated.</p>
</div>
<h2>How the process works</h2>
<p>A typical Chapter 7 case follows this timeline:</p>
<table>
<tr><th scope="col">Step</th><th scope="col">Timing</th></tr>
<tr><td>Credit counseling (required before filing)</td><td>Within 180 days before filing</td></tr>
<tr><td>File petition, schedules, and statements</td><td>Day 0</td></tr>
<tr><td><a href="https://automaticstay.org" title="Automatic Stay in Bankruptcy -- Open Bankruptcy Project" target="_blank" rel="noopener">Automatic stay</a> takes effect (creditors must stop collections)</td><td>Immediately upon filing</td></tr>
<tr><td>341 <a href="https://341meeting.org" title="341 Meeting of Creditors -- Open Bankruptcy Project" target="_blank" rel="noopener">meeting of creditors</a></td><td>21-40 days after filing</td></tr>
<tr><td>Debtor education course (required for discharge)</td><td>Before discharge</td></tr>
<tr><td>Deadline for creditors to object to discharge</td><td>60 days after <a href="https://341meeting.org" title="341 Meeting of Creditors -- Open Bankruptcy Project" target="_blank" rel="noopener">341 meeting</a></td></tr>
<tr><td>Discharge entered</td><td>~60-90 days after <a href="https://341meeting.org" title="341 Meeting of Creditors -- Open Bankruptcy Project" target="_blank" rel="noopener">341 meeting</a></td></tr>
<tr><td>Case closed</td><td>Shortly after discharge (or after asset distribution)</td></tr>
</table>
<p>From filing to discharge, a straightforward no-asset Chapter 7 case takes roughly 3 to 4 months.</p>
<h2>What gets discharged</h2>
<p>Chapter 7 discharge under <a href="https://www.law.cornell.edu/uscode/text/11/727">Section 727</a> eliminates most unsecured debts, including:</p>
<ul>
<li>Credit card balances</li>
<li>Medical bills</li>
<li>Personal loans</li>
<li>Past-due utility bills</li>
<li>Deficiency balances after repossession or foreclosure</li>
<li>Most lawsuit judgments</li>
</ul>
<h2>What does not get discharged</h2>
<p>Certain debts survive a Chapter 7 discharge under <a href="https://www.law.cornell.edu/uscode/text/11/523">Section 523(a)</a>:</p>
<ul>
<li><strong>Student loans</strong> -- unless you prove <a href="https://bankruptcyhardship.org" title="Undue Hardship in Bankruptcy -- Open Bankruptcy Project" target="_blank" rel="noopener">undue hardship</a> (rare)</li>
<li><strong>Child support and alimony</strong> -- domestic support obligations are never dischargeable</li>
<li><strong>Most tax debts</strong> -- with limited exceptions for old returns</li>
<li><strong>Debts from fraud</strong> -- if a creditor proves the debt arose from false pretenses</li>
<li><strong>DUI-related debts</strong></li>
<li><strong>Willful and malicious injury</strong> -- to persons or property</li>
<li><strong>Government fines and penalties</strong></li>
</ul>
<div class="warning-box">
<div class="label">Chapter 13 comparison</div>
<p>Some of these <a href="https://nondischargeable.org" title="Nondischargeable Debts -- Open Bankruptcy Project" target="_blank" rel="noopener">nondischargeable</a> debts -- including willful injury to property, certain divorce obligations, and government fines -- can be discharged in <a href="chapter-13.html">Chapter 13</a> through what is known as the <a href="what-is-a-super-discharge.html">super discharge</a>. This is one reason some debtors choose Chapter 13 over Chapter 7.</p>
</div>
<h2>What property is exempt</h2>
<p>Exemptions protect certain property from the trustee. The available exemptions depend on your state. Most states allow you to protect:</p>
<ul>
<li>A certain amount of equity in your home (homestead exemption)</li>
<li>A vehicle up to a certain value</li>
<li>Household goods and clothing</li>
<li>Retirement accounts (401(k), IRA -- generally fully exempt)</li>
<li>Tools of your trade</li>
<li>Public benefits and Social Security</li>
</ul>
<p>Some states allow you to choose between state exemptions and federal exemptions under <a href="https://www.law.cornell.edu/uscode/text/11/522">11 U.S.C. Section 522(d)</a>. Others require you to use the state exemption scheme.</p>
<h2>The 727(a)(8) discharge bar</h2>
<p>If you received a Chapter 7 or Chapter 11 discharge within the past 8 years, <a href="https://www.law.cornell.edu/uscode/text/11/727">Section 727(a)(8)</a> bars you from receiving another Chapter 7 discharge. The 8-year period is measured from filing date to filing date.</p>
<div class="red-box">
<div class="label">Why this matters</div>
<p>Filing a Chapter 7 case inside the 8-year window does not prevent you from filing -- it prevents you from getting a discharge. You go through the entire process, the trustee reviews your assets, and at the end you get nothing. Your attorney should check your filing history before filing a new case.</p>
</div>
<p>A related provision, <a href="https://www.law.cornell.edu/uscode/text/11/727">Section 727(a)(9)</a>, bars Chapter 7 discharge if you received a Chapter 13 discharge within the past 6 years (unless you paid 100% of unsecured claims, or 70% in good faith with best-effort payments).</p>
<div class="cta-box">
<p>Not sure if a <a href="https://dischargebar.org" title="Bankruptcy Discharge Bar -- Open Bankruptcy Project" target="_blank" rel="noopener">discharge bar</a> applies to you?</p>
<a class="btn" href="check.html">Check Your Eligibility</a>
</div>
<h2>Related resources</h2>
<ul>
<li><a href="chapter-13.html">Chapter 13 Explained</a> -- <a href="https://chapter13plan.org" title="Chapter 13 Repayment Plan -- Open Bankruptcy Project" target="_blank" rel="noopener">Repayment plan</a> alternative to liquidation</li>
<li><a href="what-is-a-super-discharge.html">What Is a Super Discharge?</a> -- Debts Chapter 13 eliminates that Chapter 7 cannot</li>
<li><a href="compare.html">Compare All Discharge Bars</a> -- Side-by-side: 1328(f), 727(a)(8), 727(a)(9), 109(g)</li>
<li><a href="explainer.html">Section 1328(f) Explainer</a> -- The Chapter 13 <a href="https://dischargebar.org" title="Bankruptcy Discharge Bar -- Open Bankruptcy Project" target="_blank" rel="noopener">discharge bar</a> in detail</li>
<li><a href="glossary.html">Glossary</a> -- Bankruptcy terms in plain English</li>
<li><a href="check.html">Eligibility Checker</a> -- Check your dates against the statutory windows</li>
<li><a href="can-you-file-bankruptcy-twice.html">Can You File Bankruptcy Twice?</a></li>
<li><a href="can-i-keep-my-house-in-bankruptcy.html">Can I Keep My House in Bankruptcy?</a></li>
<li><a href="how-long-does-bankruptcy-stay-on-credit.html">How Long Does Bankruptcy Stay on Credit?</a></li>
<li><a href="what-is-the-means-test.html">What Is the Means Test?</a></li>
<li><a href="what-is-the-automatic-stay.html">What Is the Automatic Stay?</a></li>
<li><a href="how-much-does-bankruptcy-cost.html">How Much Does Bankruptcy Cost?</a></li>
<li><a href="can-creditors-collect-after-discharge.html">Can Creditors Collect After Discharge?</a></li>
<li><a href="what-happens-at-341-meeting.html">What Happens at the 341 Meeting?</a></li>
</ul>
<h2>Legal references</h2>
<ul>
<li><a href="https://www.law.cornell.edu/uscode/text/11/chapter-7">11 U.S.C. Chapter 7</a> -- Liquidation</li>
<li><a href="https://www.law.cornell.edu/uscode/text/11/707">11 U.S.C. Section 707</a> -- Dismissal and <a href="https://meanstest.org" title="Bankruptcy Means Test -- Open Bankruptcy Project" target="_blank" rel="noopener">means test</a></li>
<li><a href="https://www.law.cornell.edu/uscode/text/11/727">11 U.S.C. Section 727</a> -- Discharge (Chapter 7)</li>
<li><a href="https://www.law.cornell.edu/uscode/text/11/522">11 U.S.C. Section 522</a> -- Exemptions</li>
<li><a href="https://www.law.cornell.edu/uscode/text/11/523">11 U.S.C. Section 523</a> -- Exceptions to discharge</li>
<li><a href="https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics">Chapter 7 Bankruptcy Basics</a> -- U.S. Courts</li>
</ul>
<div class="chapter-nav">
<p>Related chapters</p>
<div class="chapter-nav-links">
<a href="chapter-7.html" class="current">Chapter 7</a>
<a href="chapter-13.html">Chapter 13</a>
<a href="chapter-11.html">Chapter 11</a>
<a href="chapter-12.html">Chapter 12</a>
</div>
</div>
<div style="background:#161b22;border:1px solid #238636;border-radius:6px;padding:1rem 1.5rem;text-align:center;max-width:600px;margin:2rem auto 1rem">
<p style="color:#e6edf3;margin:0 0 0.5rem;font-size:0.95rem">This site is free and open-source. Donations support the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631), funding PACER access fees and bankruptcy court transparency research.</p>
<div style="background:#161b22;border:1px solid #30363d;border-radius:6px;padding:1.5rem;text-align:center;max-width:600px;margin:2rem auto">
<p style="color:#f0f6fc;font-size:1rem;font-weight:600;margin-bottom:0.5rem">Stay updated on new datasets and research findings</p>
<p style="color:#9eaab6;font-size:0.85rem;margin-bottom:1rem">No spam. No marketing. Just data.</p>
<form action="https://formspree.io/f/xkoqeyzw" method="POST" style="display:flex;gap:0.5rem;justify-content:center;flex-wrap:wrap">
<input type="email" name="email" placeholder="your@email.com" required style="padding:0.5rem 1rem;border-radius:6px;border:1px solid #30363d;background:#0d1117;color:#f0f6fc;font-size:0.9rem;min-width:250px">
<input type="hidden" name="_subject" value="BTN Research Subscriber">
<button type="submit" style="padding:0.5rem 1.5rem;border-radius:6px;border:none;background:#238636;color:#fff;font-weight:600;font-size:0.9rem;cursor:pointer">Subscribe</button>
</form>
</div>
<a href="https://buy.stripe.com/7sY7sE7qbeIZdQfclSaVa05" style="display:inline-block;background:#bf3989;color:#fff;padding:0.6rem 1.8rem;border-radius:6px;font-weight:600;font-size:0.95rem;text-decoration:none;transition:background 0.2s" onmouseover="this.style.background='#9e2c6f'" onmouseout="this.style.background='#bf3989'">♥ Donate</a>
</div>
<div class="footer">
<p><a href="index.html">Map</a> · <a href="check.html">Checker</a> · <a href="explainer.html">Explainer</a> · <a href="compare.html">Compare</a> · <a href="glossary.html">Glossary</a> · <a href="caselaw.html">Case Law</a> · <a href="dashboard.html">Dashboard</a></p>
<p style="margin-top:8px">Part of the <a href="https://github.com/ilikemath9999/bankruptcy-discharge-screener">Bankruptcy Discharge Bar Screener</a>, an open-source project. This is not legal advice.</p>
<p style="margin-top:8px">Last updated: June 2026</p>
</div>
</div>
<div style="background:#161b22;border:1px solid #30363d;border-radius:6px;padding:1.5rem;text-align:center;max-width:900px;margin:2rem auto 0">
<p style="color:#f0f6fc;font-size:1.1rem;font-weight:600;margin-bottom:0.25rem">PACER cases made free through RECAP: <span id="recap-count" style="color:#58a6ff">150+</span> of 37.9 million</p>
<p style="color:#9eaab6;font-size:0.85rem;margin-bottom:0.75rem">Every document we access becomes permanently free for the next researcher, attorney, or debtor.</p>
<div style="background:#21262d;border-radius:6px;height:22px;overflow:hidden;margin:0.75rem auto;max-width:400px"><div style="background:linear-gradient(90deg,#238636,#2ea043);height:100%;width:0%;border-radius:6px;min-width:2px"></div></div>
<p style="margin-bottom:0.25rem"><span style="color:#58a6ff;font-size:1.2rem;font-weight:700">$0</span> <span style="color:#9eaab6">of</span> <span style="color:#f0f6fc;font-size:1.2rem;font-weight:700">$5,000</span> <span style="color:#9eaab6">Q1 PACER research goal</span></p>
<p style="color:#9eaab6;font-size:0.8rem;margin-bottom:0.75rem">1,500+ hours. No grants, no institutional backing. 0 supporters so far.</p>
<a href="https://1328f.org/support/" style="display:inline-block;background:#238636;color:#fff;padding:0.5rem 1.5rem;border-radius:6px;font-weight:600;font-size:0.9rem;text-decoration:none">Sponsor this research</a>
</div>
<script>fetch("/data/recap-count.json").then(function(r){return r.json()}).then(function(d){var e=document.getElementById("recap-count");if(e&&d.count!==undefined)e.textContent=d.count.toLocaleString()}).catch(function(){})</script>
<footer style="text-align:center;padding:24px 0;font-size:13px;color:#9eaab6;border-top:1px solid #30363d;margin-top:2rem">
<a href="https://github.com/ilikemath9999/bankruptcy-discharge-screener" target="_blank" rel="noopener">Open Source</a>
· <a href="https://1328f.org">Research</a>
· No personal data collected
<br>Research and reports at <a href="https://1328f.org">1328f.org</a>
<br><span style="font-size:11px">This site provides general information only and does not constitute legal advice. No attorney-client relationship is created by using this tool. Consult a licensed attorney for advice on your specific situation.<br>A project of the <strong>Open Bankruptcy Project</strong>, a 501(c)(3) nonprofit (EIN 41-5159631).</span>
</footer>
<script>document.addEventListener('click',function(e){var a=e.target.closest('a');if(a&&a.href&&a.href.indexOf('uscourts.gov/rules-policies')!==-1){gtag('event','rules_suggestion_click',{link_url:a.href,page_path:location.pathname})}})</script>
<script src="/btn-engage.js"></script>
<script src="/btn-search.js" defer></script>
</body>
</html>