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Step 4A · Liquidation chapter

Chapter 7 in plain English.

Chapter 7 wipes qualifying unsecured debt — credit cards, medical bills, deficiency judgments, old utility bills, payday loans — in roughly four months. About 96% of cases nationally are no-asset cases, meaning you keep everything you own.

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Federal flat fee
$1,500
All-in legal fee for a typical Chapter 7 case.
~4 mo
Filing to discharge
96%
No-asset cases
$338
Court filing fee
The 7 sub-steps inside Chapter 7

Filing day is step three, not step one.

Most of the work happens before the petition ever hits the docket. Each sub-step has a checklist, a fixed-fee line item, and a real human you can call.

01
Pre-filing · Week 1

Means test & budget mapping

We use your last 6 months of paystubs and tax returns to run the federal means test. Pass it and Chapter 7 is on the table.

  • Median-income comparison for your household size
  • Allowed-expense calculation against IRS standards
  • Disposable-income test if step 1 doesn’t pass outright
Time required90 min
Documents6 mo paystubs
Done byAttorney
02
Pre-filing · Week 2

Credit counseling course (federal)

The 1995 reform act requires a 60-90 minute counseling session from an approved nonprofit before you file. We schedule it; you take it online.

  • Federally-approved providers only ($14–$25)
  • Certificate must be dated within 180 days of filing
  • Fee waivers available below 150% federal poverty line
Cost$14–$25
FormatOnline or phone
Required by11 USC 109(h)
03
Filing day · The auto-stay activates

Petition + schedules + statement of financial affairs

We file the 70-page petition package electronically. The federal automatic stay activates the moment the docket clerk timestamps your filing.

  • Voluntary petition (Form 101)
  • Schedules A through J (assets, debts, income, expenses)
  • Statement of Financial Affairs (last 2 years)
Filing windowSame day
Court fee$338
Stay activatesInstantly
04
Roughly day 35 · The 341 meeting

Meeting of creditors with the trustee

The single courtroom-adjacent moment in your case. Most last under 12 minutes. The trustee asks routine questions; creditors almost never appear.

  • Held by appointed trustee, not a judge
  • Photo ID + Social Security card required
  • We attend with you and answer most questions
Length~12 min
FormatZoom / in-person
Creditors show<3% cases
05
Day 45–65 · Education + reaffirmations

Debtor education course & optional reaffirmations

Second federally-mandated course (financial management). If you want to keep a financed car or mortgage on the same terms, we draft the reaffirmation agreement here.

  • 2-hour online course, $7–$25
  • Reaffirmation agreements reviewed line-by-line
  • Right of rescission for 60 days post-signing
Cost$7–$25
Length~2 hrs
Required11 USC 727(a)(11)
06
Day 90–120 · Discharge order

Federal court enters your discharge

The judge signs Form 318, the order of discharge. It is mailed to you and every listed creditor. Keep it forever — this is the document that proves the debt is legally gone.

  • Wipes nearly all unsecured debt
  • Permanent injunction against collection attempts
  • Case typically closes 30 days after discharge
Court formForm 318
Mailed toAll creditors
PermanentYes
07
Month 5–17 · Rebuild

12-month credit-rebuild playbook

Most clients re-cross 700 within 22 months. We hand you a written month-by-month playbook covering secured cards, authorized-user adds, utilization targets, and the 24-month report-pull cadence.

  • Secured-card sequencing (3 lenders, 3 months)
  • Utilization targets (1%, 7%, 28%)
  • Month-12 unsecured-card transition
IncludedFree with filing
Avg score700+ in 22 mo
Coaching callsQuarterly
Federal exemptions you keep

Most clients lose nothing.

Federal exemption schedules protect a long list of household assets up to specific dollar values. State-specific overrides may apply — we’ll calculate yours at your free analysis.

Federal exemption highlights

Per filer · doubled for joint cases · updated 04/01/25
Homestead (home equity)$31,575
Motor vehicle$5,025
Household goods (per item)$800
Jewelry$2,125
Tools of the trade$3,175
Wildcard (any property)$1,675
Health aidsNo limit

Retirement & benefit exemptions

Federally protected · almost never reachable
401(k) / 403(b)No limit
Traditional / Roth IRA$1.71M
Pension benefitsNo limit
Social SecurityNo limit
Unemployment / disabilityNo limit
Veterans benefitsNo limit
Earned-income tax creditNo limit

Your case, mapped to the calendar

1
Day 0
Petition filed

Auto-stay activates instantly.

2
Day 14
Trustee assigned

Your case number is mailed to all creditors.

3
Day 35
341 meeting

~12-minute creditor meeting.

4
Day 60
Education done

Second course certificate filed.

5
Day 90
Objection window

Closes for trustees and creditors.

6
Day 120
Discharge entered

Court order arrives in mail.

Plain answers to the hard questions

FAQ from the kitchen table.

The questions clients ask quietly when their kids leave the room.

Q1 Will I lose my house?

Almost never in Chapter 7. The federal homestead exemption protects up to $31,575 of equity per filer ($63,150 joint). If your equity is below that line, the trustee has no interest in the property and you keep it. State exemptions in many districts are higher.

Q2 Will I lose my car?

If your equity is under $5,025 ($10,050 joint), no. If you owe more on the car than it’s worth, even less of an issue. Most clients keep their car by either letting the lien ride or signing a reaffirmation agreement at step 5.

Q3 Can I file alone if I’m married?

Yes. Spouses are separate filers under federal law. We sometimes recommend single-filer cases when only one spouse holds the discharge-eligible debt. Joint filing doubles the exemptions, though.

Q4 What about my tax refund?

The wildcard exemption covers it in most cases. If a large refund is incoming and the timing is bad, we sometimes wait one cycle to file. Strategic timing is included in your $1,500 flat fee.

Q5 Will my employer find out?

Filings are public record but no notice is mailed to employers in Chapter 7. Background-check companies that pull court records may see it. Employment-discrimination based on a bankruptcy filing is illegal under 11 USC 525.

Q6 Can I file again later?

You can file Chapter 7 again 8 years from your last discharge. You can file Chapter 13 just 4 years after a Chapter 7 discharge if you need to cure new arrears. Strategic re-filing is rare but real.

Run your means test for free.

Sixty minutes, on Zoom or in person, with the attorney who would actually file your case. We tell you on the call whether Chapter 7, Chapter 13, or an alternative is the right fit.

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