Frequently Asked Questions (FAQs) About Bankruptcy

Got Questions About Ch. 7 Bankruptcy - We Have Answers

Ch. 7 Bankruptcy FAQs

Chapter 7 refers to a code in the United States Bankruptcy Court. It can discharge certain debts after the bankruptcy case is complete. 

A bankruptcy discharge is granted by the United States Bankruptcy Court after a debtor’s bankruptcy case is finished. When debts are discharged, bankruptcy filers aren’t required to repay them.

Chapter 7 bankruptcy can discharge (eliminate) consumer debts. These include credit cards, medical bills, personal loans, bank loans, auto loan debt, mortgage debt, apartment debt, bank account debt, old utility bills, certain judgments from civil lawsuits, bank loans and more.

As of October 2020, the cost to file Chapter 7 bankruptcy in the United States is $335 for individuals and joint bankruptcy filers.

Typically, student loans, state fines, tickets and income taxes can’t be discharged in Chapter 7 bankruptcy. However, income taxes can be discharged if they meet certain requirements. For more information about how bankruptcy affects income tax debt, consult a bankruptcy lawyer.

Chapter 7 bankruptcy can eliminate crushing debts. It can protect exempt property from creditors. Bankruptcy can halt wage garnishments, foreclosures and automobile repossessions. 

Chapter 7 bankruptcy will remain on your credit report for up to 10 years. It can take a while to rebuild your credit score. Hiring a Chapter 7 bankruptcy lawyer is expensive.

Bankruptcy fraud occurs when a debtor knowingly provides false information on their bankruptcy forms. It is a crime that’s punishable by imprisonment and/or a fine.

Yes. Filing Chapter 7 bankruptcy can stop wage garnishments.

A debtor can file Chapter 7 bankruptcy 8 years from the date of the previous bankruptcy filing.

Yes. A husband and wife can file a joint bankruptcy. The cost to file a joint bankruptcy case in the United States is $335.

Yes. If you file Chapter 7 bankruptcy, your spouse isn’t required to file bankruptcy with you.

Joint Chapter 7 bankruptcy filers must be legally married. Unmarried partners can’t file bankruptcy together.

After you file Chapter 7 bankruptcy, creditors aren’t allowed to contact you for any reason. You’ll receive an Automatic Stay. This court order makes it illegal for creditors to call, email, write or communicate with you in any way.

Yes. You can file Chapter 7 bankruptcy without a lawyer. Since Chapter 7 bankruptcy laws are complex, it’s a good idea to consult with an attorney before you file.

After you file, the United States Bankruptcy Court will send notices to the creditors that are listed on your bankruptcy forms.

You will have to attend the 341 Meeting of the Creditors when you file Chapter 7 bankruptcy. Typically, the meeting is held in an office or conference meeting room. A bankruptcy judge presides over these meetings.

You must list all of your assets on your Chapter 7 bankruptcy forms. If you hide any assets, the U.S. Bankruptcy Court can charge you with a felony or fine you.

Each state has exemptions that allow you to protect certain property. If you own property that isn’t protected by exemptions, you could lose the property.

Credit and Ch. 7 Bankruptcy FAQs

Chapter 7 bankruptcy can stay on your credit report for up to 10 years.

Typically, filing Chapter 7 bankruptcy will lower your credit score. A good credit score will be impacted more than a low credit score. Filing bankruptcy can decrease a credit score by as much as 200 points.

You can start rebuilding your credit as soon as you receive your bankruptcy discharge.

No. It is possible to rebuild your credit in 18 to 24 months after you file Chapter 7 bankruptcy.

You may receive credit card offers within 6 months after you file for Chapter 7 bankruptcy. You should know that the interest rates on these offers might be high.

Document Preparation and Ch. 7 Bankruptcy FAQs

Prepare My Chapter 7 is a non-attorney bankruptcy form preparation company. We prepare bankruptcy forms for people who file Chapter 7 bankruptcy without an attorney.

Prepare My Chapter 7 operates as a debt relief agency. We are not a law firm. 

A bankruptcy form preparer is a person who completes bankruptcy forms for people who file without a lawyer.

No. Bankruptcy form preparers can’t represent you in court or act on your behalf in legal matters.

No. Bankruptcy form preparers can’t assist you throughout your case. If you file bankruptcy without a lawyer, you must handle your case on your own.

Although bankruptcy is a federal law, each jurisdiction has local rules. The District of Maryland limits the amount of money that a bankruptcy form preparer can charge. The preparation fee in Maryland cannot exceed $125.

We require upfront payments for our bankruptcy preparation services.


All fee payments must be paid in full.

All payments are made through PayPal.

At Prepare My Chapter 7, we don’t offer refunds for our services. 

Prepare My Chapter 7 is owned and operated by Digital Assets LLC. Our company has business insurance including Errors and Omissions insurance. Unlike lawyers, bankruptcy petition preparers aren’t required to be licensed.

The United States Bankruptcy Court will determine if your debts will be discharged. Prepare My Chapter 7 cannot make guarantees about bankruptcy discharges or court actions.

Send us an email to let us know about the error. We will correct the error and send the form to you via email. Then, you will file it with the bankruptcy court.

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