ABA Family Legal Guide

Consumer Bankruptcy

Straight Bankruptcy: Chapter 7

Chapter 7 Defined

After I complete credit counseling, what is the next step?

A Chapter 7 bankruptcy case begins when you file a petition with the U.S. Bankruptcy Court asking it to relieve you (or you and your spouse, if you are both filing) from your dischargeable debts. The bankruptcy court clerk or the Bankruptcy Noticing Center will notify your listed creditors that you have filed a bankruptcy petition, and creditors must immediately stop most collection efforts. A bankruptcy trustee will be appointed, usually a local bankruptcy private lawyer approved by the Justice Department. As of the date you file your bankruptcy petition, your assets will be under the protection of the federal court.