Means Testing

• Everyone filing Chapter 7 bankruptcy must pass a federal means test (see Resources below.) Those who make more than their state's median income will likely need to file Chapter 13.
  
  

Credit Counseling

• All bankruptcy filers must pursue federally approved credit counseling (see Resources below) and prove they completed a session before their papers will be accepted by the court.
  
  

Assets

• A list of assets will be reviewed by the federal bankruptcy court during a Chapter 7 case. Retirement accounts cannot be seized to offset creditor losses, but most other assets can.
  
  

Debts

• Some debts cannot be discharged through Chapter 7 bankruptcy, including almost all student loans, taxes less than three years old, child support, court fines, and drunken driving-related lawsuits.
  
  

Time Frame

• It takes anywhere from four to eight months to finalize a Chapter 7 case, during which time no new debt can be accrued and no assets can be sold or transferred without court permission.