Filing for Chapter 7 Bankruptcy
Bankruptcy in the United States generally comes in three main forms. Chapter 7 allows individuals to wipe out most debts by giving up certain non-exempt property, making it the fastest and simplest option for those with limited income. Chapter 13 lets individuals keep their property while repaying debts over a three-to-five-year court-approved plan. Chapter 11 is typically used by businesses (and occasionally individuals with high debt) to reorganize and continue operating while restructuring what they owe. Chapter 7 is the most common and accessible option for individuals with limited income and assets. This article focuses on the process of filing for Chapter 7 bankruptcy without an attorney in the Western District of Texas, El Paso Division.
WHO IS ELIGIBLE FOR A CHAPTER 7 BANKRUPCY? There are 6 requirements you must meet to be eligible for Chapter 7 bankruptcy:
1. Means Test (Income Qualification): This is the most significant eligibility hurdle. It determines whether your income is low enough to qualify for Chapter 7 rather than being required to file Chapter 13.
a) Compare income to state median: Your average gross income over the past 6 months is compared to the median income for a household of your size in your state. If your income is below the median, you automatically pass the means test and qualify for Chapter 7.
b) If your income exceeds the median, you must complete a more detailed calculation, subtracting allowed expenses (IRS standards, secured debt payments, etc.) from your income to determine your "disposable income." If this remaining amount is below certain thresholds, you may still qualify. For more details on the form, visit: https://www.uscourts.gov/forms-rules/forms/means-test-forms.
2. No Recent Bankruptcy Discharges. You cannot file Chapter 7 if you have already received a discharge in:
a) A previous Chapter 7 or Chapter 11 case filed within the last 8 years.
b) A previous Chapter 13 case filed within the last 6 years (with some exceptions if you paid back a significant portion of debts).
3. No Dismissed Case in Last 180 Days. You're ineligible if a prior bankruptcy case was dismissed within the past 180 days due to:
a) Your willful failure to appear before the court or comply with court orders, or
b) You voluntarily dismissed the case after creditors sought relief from the automatic stay.
4. Entity Type: Individuals, married couples (joint filing), and certain businesses (corporations, partnerships) can file for chapter 7.
5. Residency: You must reside, have a domicile, place of business, or property in the U.S. to file in U.S. bankruptcy court.
6. No Fraudulent Intent: The bankruptcy court can deny eligibility if it finds evidence of bad faith filing, such as concealing assets or committing fraud in connection with the case.
THE STEPS
STEP 1: COMPLETE A CREDIT COUNSELING COURSE BEFORE FILING
Before you can file, federal law requires you to complete a Credit Counseling Course from an approved provider. To find approved providers in your district (e.g., Western District of Texas), visit the U.S. Trustee Program's list: https://www.justice.gov/ust/list-credit-counseling-agencies-approved-pursuant-11-usc-111.
Most courses cost around $50, and this fee is generally not waivable. Many providers offer the course in multiple languages and on-line. When you finish, save your certificate of completion—you will need to attach it to your petition.
Tip: While not required, it is a good idea to pull a copy of your credit report from one of the "big three" agencies (Equifax, Experian, or TransUnion) before you start the bankruptcy process. This will allow you to make sure you have a full picture of your debts.
STEP 2: GATHER AND COMPLETE THE REQUIRED BANKRUPTCY FORMS
The official forms are available for free at: https://www.txwb.uscourts.gov/forms.
Here are the key forms you will need:
q Voluntary Petition for Individual Debtor (Form 101): This is your main filing. You will indicate that you are filing pro se (i.e., without a lawyer) under Chapter 7. Confirm that you have completed credit counseling where the form asks and attach your certificate. If you cannot afford the filing fee, check the box requesting a fee waiver (more on this below).
q Schedules and Declaration (Form 106 Series): These forms paint a complete financial picture:
q Schedules A/B – Property: List all your assets, from real estate and vehicles to cash, furniture, and clothing. Most everyday items are exempt (protected), but you must still disclose everything.
q Schedule C – Exemptions: This is where you claim which property is protected from creditors. Texas residents may choose between the generous Texas state exemptions and the federal exemptions. Texas’s homestead exemption is among the most protective in the nation, and provides for exemption for retirement accounts, personal property, and a vehicle.
q Schedules D, E/F – Creditors: Schedule D covers secured debts (like a mortgage or car loan). Schedule E/F covers unsecured debts (like credit cards and medical bills).
q Schedule G – Contracts and Leases: List apartment leases, car leases, and phone contracts.
q Schedule H – Co-Debtors: List anyone who co-signed your debts. Note that Texas is a community property state. If you are married, your spouse's debts and assets may be treated as jointly owned even if only you are filing, so disclose your spouse's information where requested.
q Schedule I – Income: Report your monthly income, including benefits with a set value such as food stamps. (You do not list Medicare or Medicaid.)
q Schedule J – Expenses: Itemize your monthly expenses in detail: food, transportation, utilities, insurance, childcare, pet care, etc.
q Summary of Schedules: Complete this last. It simply totals figures from the schedules above.
q Declaration Concerning Debtor's Schedules: A signed statement confirming your schedules are accurate. Sign this only after everything has been reviewed.
Other Required Documents:
q Statement of Financial Affairs (Form 107): Details about your income, employment over the past two years, and any public benefits received in the last two years.
q Statement of Social Security Number (Form 121): Your full nine-digit SSN. If you used an ITIN before getting an SSN, include both. Any EIN used in the last eight years goes on the petition (Form 101).
q Notice to Individual Consumer Debtors: Confirms you understand your options and have met the filing prerequisites.
q Means Test (Form 122A-1 and 122A-1Supp): Determines your eligibility for Chapter 7 based on your income.
q Statement of Intention (Form 108): If you have secured debts, this tells the court whether you will surrender the property or keep it and continue paying.
q Exhibit D – Individual Debtor's Statement of Compliance with Credit Counseling Requirement: This document formally certifies to the court that you completed your credit counseling course before filing. It is distinct from the certificate of completion itself, which your provider issues to you—Exhibit D is the court form on which you affirm you met this requirement and attach that certificate.
q List of Creditors Verification and List of Creditors (Creditor Matrix): This is a complete mailing list of every creditor's name and address, formatted to the court's specifications, accompanied by a signed verification confirming the list is accurate. The court uses this matrix to notify all your creditors of your filing. Although you also identify creditors within Schedules D and E/F, this separate list must still be submitted.
q Pro Se Questionnaire: Because you are representing yourself, the Western District of Texas requires you to complete a Pro Se Questionnaire. This document confirms that you understand you are filing without an attorney and acknowledges the responsibilities and risks of proceeding pro se.
Important note on Social Security Numbers: On every form except the Statement of Social Security Number (Form 121), list only the last four digits of your SSN. Only on Form 121 will you provide your full nine-digit number.
STEP 3: REVIEW AND FILE YOUR FORMS AND PAY THE FILING FEE
Before filing, double-check your forms against the court's website (available at https://www.txwb.uscourts.gov/). You can file your documents in person, by mail, or electronically. Filing instructions for self-represented litigants are available on the court's website. The El Paso bankruptcy court is in the Albert Armendariz, Sr., Federal Courthouse, located at 525 Magoffin Avenue.
One of the most important protections kicks in the moment you file: the automatic stay. This legally halts most collection activity. Lawsuits, repossessions, foreclosures, and creditor calls must stop while your case proceeds. There are limited exceptions, most notably child support and alimony, which are not stopped by the stay.
The fee to file a Chapter 7 petition is approximately $338. If you cannot afford it, you have two options: 1) Apply for a fee waiver using the appropriate application. There is no guarantee it will be granted, but you can wait to pay until the court decides; or 2) If the waiver is denied, you may apply to pay in installments (Form 103A).
STEP 4: ATTEND THE MEETING OF CREDITORS (341(a) MEETING)
After you file, the court schedules a Meeting of Creditors, also called a “341(a) Meeting.” You are required to attend, whether or not you have an attorney. It is usually held about 30 days after filing. The meeting is run by the trustee, a person appointed to oversee your case, review your financial records, and ensure creditors are paid as much as possible. Creditors rarely attend in a typical individual Chapter 7, so it is usually just you and the trustee. Most meetings last about 15 minutes. Provide all required documents (such as tax returns and pay stubs) to the trustee at least seven days before the meeting.
STEP 5: COMPLETE POST-FILING REQUIREMENTS
q Debtor Education Course: After filing, you must complete a second required course, the Debtor Education Course, and file proof of completion. You have until 60 days after the Meeting of Creditors to file the proof of completion. Failure to complete this course can result in your case can be closed without you receiving a discharge. This course also costs around $50.
q Reaffirmation Agreements (if applicable): If you choose to keep property tied to a debt (for example, continuing to pay your mortgage to keep your home or paying your car loan to keep your car), you must file a Reaffirmation Agreement, generally within 60 days of the Meeting of Creditors. You will typically know by the end of the meeting whether this applies to you.
For a straightforward case, the process usually resolves within three to six months of filing, ending in a discharge of your qualifying debts. To speak with an attorney in the Fort Bliss Legal Assistance Office on this or any other topic, please schedule an appointment by emailing usarmy.bliss.hqda-otjag.mesg.bliss-legal-assistance-office@army.mil at any time or by calling (915) 568-7141 during business hours.
1st Lt. Radomir Jurewicz, Fort Bliss Legal Assistance Office