Chapter 7 bankruptcy is the most common type of consumer bankruptcy. This legal process provides a financial “fresh start” by discharging most or all of a person’s unsecured debts, such as credit card debt and medical debt. However, it does not eliminate other types of debt such as student loans, back taxes or court-ordered spousal or child support payments.

Before you get to the point where your debts are discharged, you must complete the filing process. Although not required, it’s a good idea to seek assistance from a qualified bankruptcy attorney. While it’s true you are legally allowed to file on your own, filing Chapter 7 bankruptcy is a multi-step process that can become quite complex for someone with no legal background. And if you file yourself, court employees are prohibited from offering guidance or advice, even if they see clear mistakes in your paperwork.

Keep in mind certain steps may vary depending on the laws in your state or local jurisdiction, as well as the circumstances of each individual case. But in general, these are the steps to file Chapter 7 bankruptcy.

Determine Eligibility

Before you can file, you’ll need to prove your eligibility by passing a means test. This test compares your income to your state’s median income to determine if you qualify for Chapter 7 bankruptcy.

Go Through Credit Counseling

Most states require filers to complete credit counseling within 180 days before filing from an approved nonprofit agency like Take Charge America. This will help you determine if there are other debt relief options, such as a debt management plan, that can help you avoid filing bankruptcy.

Compile Necessary Documents

Whether you are planning to file on your own or working with an attorney, you’ll need to compile a variety of financial documents. These can include: tax returns, pay stubs, credit card statements, a list of assets and liabilities, bank statements and any current contracts or lease agreements.

Complete Essential Forms

Filing Chapter 7 bankruptcy involves completing several forms including the petition, schedules and statements. They include relevant details of your financial situation including income, assets, expenses, debts and recent or current financial transactions.

If you are working with an attorney, they will ensure all the paperwork is accurate and complete. If you’re filing on your own, there are document preparers who can help you fill out all the paperwork. But once again, they can’t offer legal advice or assistance, simply administrative help.

File the Bankruptcy Petition

After you compile all the necessary information and complete the forms, it’s time to file the bankruptcy petition. You will file with the bankruptcy court in your district. Be aware there will be filing fees; in some cases, the court may waive these fees depending on your current financial situation.

Trustee Appointment & Automatic Stay

Once you file, the court will appoint a bankruptcy trustee to review your documents and oversee your case. The trustee may also facilitate the court-ordered sale (liquidation) of certain assets to raise funds to pay off a portion of your debt. These can include vacation or rental properties (but not your primary residence), collector cars, designer clothing or jewelry and antiques or other valuable collectibles.

 Also, an automatic stay will go into effect. This  should stop any ongoing creditor collection efforts such as phone calls, texts and social media messages.

341 Meeting

Named after a section of the bankruptcy code, this is a meeting with you, your trustee and any creditors who choose to attend (many creditors opt out of these meetings). Your attorney may also attend this meeting, but it isn’t required. The meeting is to allow the trustee and creditors to ask detailed questions about your financial situation.

Participate in Debtor Education

Following your filing, you’ll be required to take a debtor education course that covers behavioral and financial adjustments you can make going forward to help avoid unmanageable debt in the future.  Many of the agencies that provide credit counseling also offer these courses. In many cases, you may complete the course entirely online for a small fee.

Debts Discharged

After completing all the required steps and providing there are no objections from your trustee or creditors, you should receive a discharge of any remaining unsecured debts. You will no longer be responsible to pay these debts in whole or part. It’s time to start rebuilding your credit and making financial decisions that help you work toward your future goals.

Long-term Effects

Chapter 7 bankruptcy will stay on your credit report for up to 10 years. It will initially be challenging to obtain new credit at reasonable rates. But ss time passes and you make an effort to build a new, positive credit history, the bankruptcy will have less of an effect.

These answers to common questions about bankruptcy will help you learn more.