How to file Chapter 7
• The consumer should proceed to the clerk of the Federal Bankruptcy Court that is serving in his/her area.
• He/she should submit the Individual Debtor's Statement of Compliance with the certificate of completion from the credit counseling course.
• Wait for the court to send out the notice of his/her Chapter 7 bankruptcy case. The consumer should know that the court is about to inform the creditors that he/she has filed bankruptcy.
The notice to the creditors contains the when and where of the hearing and gives them time to come up with arguments to challenge the petition. The consumer, because of the absence of a lawyer, should read the notice thoroughly to make sure that he/she attends this meeting.
Things to remember after receiving the hearing notice:
• The consumer will get information on the person that is going to hear the case and should provide this person a copy of his/her last federal tax return and pay stubs as soon as possible.
• He/she must list every creditor in the petition because leaving a creditor out will work against the case. It can be dismissed without the debts being discharged.
The consumer can request for a free credit report to get a complete list of his/her creditors.
Are there any more meetings to be attended? (Post-filing)
This is another mandatory course that the consumer has to attend. It is called Debtor Education (Personal Financial Management Course) prior to the hearing.
• Remember that it has to be obtained from a court approved agency.
• After receiving the certificate of completion the consumer can then file Form 23 with the bankruptcy court.
Tips to remember for the meeting:
• Never be late, in fact, show up early to get the feel of the whole court scene, especially if this is the consumer’s fist time to be in a court proceeding, and without a lawyer the experience can be nerve racking.
• Sit where the trustee could be heard clearly.
• Take note that the other people in the room (it is a public hearing) are also filing bankruptcy and the trustee is going to ask the same question from filer to filer.
• When it is the consumer’s turn, he/she would be sworn in (oath taking), wherein he/she would be asked to answer the questions truthfully.
• After the hearing is done, the consumer would have to wait for a letter from the trustee discharging the debts.
What if the consumer had a change of heart about Chapter 7 after it was already filed?
The consumer can ask the course to dismiss the case. The court generally agrees as long as the creditors are still going to be paid. That is if the consumer wanted to keep his/her properties and convert to Chapter 13 instead. The court, the trustee, and the creditors are all for getting paid. They are not interested in the consumer’s properties but the profit that would come from their sale.
More resources about filing bankruptcy on your own: