Chapter 7 Eligibility Requirements

• Chapter 7 bankruptcy is only available to people with an income that is equal to or below the median income level for their household size within the state. If a person's income is higher than the median income level, he may still qualify for Chapter 7 bankruptcy if he has high living expenses. Review the district bankruptcy court website to find out the state's median income level for each household size.
  
  

Paperwork

• Debtors have to submit documents verifying their income and assets to the trustee after filing the bankruptcy case. Generally, a trustee requests pay stubs or any other documents that confirm income, copies of the previous years' tax returns or tax transcripts and bank statements for all bank accounts. The exact list of documents the trustee needs varies depending on the facts of the case and the district. The trustee mails a notice to the debtor advising him of the documents he should forward to the office.
  
  

Bankruptcy Petition

• Complete the Chapter 7 bankruptcy petition. The petition is available on the U.S. Courts website. State the names and addresses of all creditors, list all property owned, provide an average of the monthly income received for the past six months, and list the monthly living expenses. The information debtors need to provide in the petition is extensive. Fill out all applicable portions of the bankruptcy petition accurately and thoroughly.
  
  

Credit Counseling and Debtor's Education

• The Bankruptcy Code requires debtors to complete credit counseling before filing the bankruptcy case. A debtor's education course must be completed after the case is filed. The U.S. Department of Justice provides a list of court-approved credit counseling agencies and debtor's education courses available within each state. The fees for credit counseling and debtor's education vary depending on the company used. The companies provide the debtor with a certificate after the courses are completed. File those certificates with the bankruptcy court.
  
  

Filing Fees

• The filing fee for a Chapter 7 bankruptcy case is $299, as of 2011. Submit the bankruptcy petition and credit counseling certificate along with the payment to the bankruptcy court clerk. Pay the full filing fee upfront or request to pay the filing fee in installments by completing an Application to Pay Filing Fee in Installments. Submit an Application for Waiver of the Chapter 7 Filing Fee to the court if it is not possible to pay the $299 filing fee at all. People with an income that is 150 percent below the poverty line for their household size are eligible for a filing fee waiver. The bankruptcy judge has to approve any fee waiver requests.