Income and means test
Recent gross income is compared to household size and applicable bankruptcy standards.
How Chapter 7 works
A Chapter 7 case is built on documents, eligibility review, and honest disclosure before anything is filed.
A typical case begins after the petition is prepared, required credit counseling is completed, documents are reviewed, and fees and costs are addressed. Once filed, the automatic stay can often pause lawsuits, garnishments, collection calls, collection letters, utility shutoffs, and sheriff sales.
Most cases include one required appearance called a 341 meeting. Creditors rarely appear, but the trustee reviews the petition and asks questions about income, property, transfers, claims, and exemptions.