Thinking about Chapter 7 bankruptcy?

Educational information only, not legal advice. This article does not assess your eligibility or predict an outcome.

If you’re trying to understand whether bankruptcy is worth looking into, the chapter numbers and unfamiliar terms can get in the way. Start with what Chapter 7 does, then look at the questions it raises for your own situation.

What does Chapter 7 do?

Chapter 7 is a federal bankruptcy process that may discharge certain debts. A trustee can sell nonexempt property, meaning property that isn’t protected by an applicable exemption. That makes both debts and property important parts of the discussion.

Those general rules don’t tell you whether a particular debt would go away or whether you could keep a particular asset. The details of your case matter.

Where does the means test fit?

Income screening is one part of the picture. Our calculator can help you see how some of the numbers work, but it doesn’t review every requirement or decide whether Chapter 7 is right for you.

Questions about a home, a car, a previous bankruptcy, or a particular debt need their own attention. An encouraging calculator result doesn’t answer them.

You can ask questions before deciding to file

A conversation with an attorney can start with what you’re worried about and what you hope to understand. Ask what information is needed, what alternatives may deserve discussion, and what the process and costs would involve.

If an explanation doesn’t make sense, ask for it in different words. You don’t need to know the vocabulary before asking for help.

For a broader introduction, see the U.S. Courts’ Chapter 7 basics.

About this content: How these articles are prepared · Official bankruptcy resources