Chapter 7 consumer bankruptcy.

Filing a petition creates an estate and generally triggers the automatic stay of 11 U.S.C. 362, subject to statutory exceptions and limits for repeat filings. A trustee is appointed. Property the debtor claims as exempt is protected from that trustee to the extent the applicable exemption law allows. Property that is not exempt may be sold to pay creditors. Which exemptions apply turns on state law. Maryland generally opts out of the federal exemption list when Maryland law applies. The domicile lookback and federal fallback in 11 U.S.C. 522(b)(3) must be checked before selecting exemptions.

Chapter 7 is not a payment plan. It does not cure a mortgage arrearage over time and it does not stop a secured creditor forever. Those are Chapter 13 questions, and they are described on the Chapter 13 page.

11 U.S.C. 707
11 U.S.C. 523
11 U.S.C. 362
11 U.S.C. 528
Official bankruptcy forms

Credit counseling runs on a 180-day period. 11 U.S.C. 109(h)(1) requires the briefing during the 180-day period ending on the date the petition is filed, from an approved nonprofit budget and credit counseling agency described in 11 U.S.C. 111(a).

The means test runs on published income figures that change. The U.S. Trustee Program table applies to cases filed on or after July 15, 2026. For Maryland that table prints $86,928 for one earner, $114,611 for two people, $135,949 for three people, and $166,173 for four people. The table adds $11,100 for each individual in excess of four.

The 707(b)(2) thresholds are also adjusted figures. As adjusted April 1, 2025, the presumption of abuse arises where 60 months of current monthly income less allowed expenses equals or exceeds the lesser of the greater of 25 percent of nonpriority unsecured claims or $10,275, or $17,150. The 707(b)(7) safe harbor adds $925 per month for each individual beyond four.

The meeting of creditors runs on a rule period. Rule 2003(a) sets the 341 meeting no fewer than 21 days and no more than 40 days after the order for relief in a Chapter 7 case. The case notice gives the meeting date and format.

The discharge and objection periods run from the meeting date. Rule 4004(a) sets a complaint objecting to discharge at 60 days after the first date set for the 341(a) meeting, and Rule 4007(c) sets the same period for a complaint under 523(c). Rule 4004(c) states that when those times expire the court must promptly grant the discharge, subject to listed exceptions.

Reaffirmation runs on its own period. Under 11 U.S.C. 524(c), a reaffirmation agreement must be made before the discharge is granted, must carry the 524(k) disclosures, must be filed with the court, and is rescindable until 60 days after it is filed or the discharge is entered, whichever is later.

The debtor education certificate is no longer an official form. 11 U.S.C. 727(a)(11) conditions discharge on completing an approved personal financial management course after filing. Rule 1007(b)(7) requires filing the certificate of completion the approved provider issues, and Rule 1007(c) sets that filing within 60 days after the first date set for the 341 meeting in a Chapter 7 case. Official Form 423, the former certification about a financial management course, was abrogated effective December 1, 2024.

The filing fee has a statutory component and two add-ons. 28 U.S.C. 1930(a)(1)(A) sets the Chapter 7 case filing fee at $245. The U.S. Bankruptcy Court for the District of Maryland prints a Chapter 7 total of $338 on its filing fees page, combining that statutory fee with a $78 administrative fee and a $15 Chapter 7 trustee surcharge. The Bankruptcy Court Miscellaneous Fee Schedule prints an effective date of December 1, 2023 and is the source of the administrative fee.

A filer who cannot pay that fee has two statutory options. 28 U.S.C. 1930(f)(1) permits the court to waive the Chapter 7 filing fee for an individual with income less than 150 percent of the applicable official poverty line who is unable to pay in installments, on Official Form 103B. Official Form 103A is the application to pay the fee in installments.

11 U.S.C. 109
U.S. Trustee Program means testing
Median family income table, cases filed on or after July 15, 2026
Fed. R. Bankr. P. 2003
Fed. R. Bankr. P. 4004
Fed. R. Bankr. P. 4007
Fed. R. Bankr. P. 1007
11 U.S.C. 524
11 U.S.C. 727
28 U.S.C. 1930
Bankruptcy Court Miscellaneous Fee Schedule
District of Maryland filing fees
Form 423 abrogated effective December 1, 2024

Filing requirements

• Complete the credit counseling briefing. 11 U.S.C. 109(h)(1) requires an approved briefing during the 180-day period ending on the date the petition is filed. The certificate the agency issues is the proof.
• Run the means test on the filing date. Official Form 122A-1 reports current monthly income, which is the six full calendar months before the petition. Form 122A-2 is the calculation when the income figure requires it. The published income figures follow the petition date, so they are pulled on that date and not from an earlier draft.
• File the petition and appear at the 341 meeting. The United States trustee convenes the meeting of creditors under 11 U.S.C. 341(a). Federal Rule of Bankruptcy Procedure 2003(a) sets that meeting no fewer than 21 days and no more than 40 days after the order for relief. The case notice gives the meeting date and format.
• Complete the personal financial management course. 11 U.S.C. 727(a)(11) conditions the discharge on completing an approved instructional course after filing. Rule 1007(b)(7) requires filing the certificate the approved provider issues, and Rule 1007(c) sets that filing within 60 days after the first date set for the 341 meeting in a Chapter 7 case.

Further questions

• What is Chapter 7? Chapter 7 is the consumer liquidation chapter of the Bankruptcy Code. A trustee is appointed, nonexempt property may be sold to pay creditors, and the individual debtor may receive a discharge of the debts that the Code allows to be discharged.
• What is the means test? The means test is the screen in 11 U.S.C. 707(b). Official Form 122A-1 reports current monthly income, which is the six full calendar months before the petition. Under 707(b)(7), no motion under 707(b)(2) may be brought where annualized current monthly income is at or below the applicable state median family income for the household size. The U.S. Trustee Program publishes those median figures, and the published table applies to cases filed on or after July 15, 2026.
• When must credit counseling be done? 11 U.S.C. 109(h)(1) requires the briefing during the 180-day period ending on the date the petition is filed, from an approved nonprofit budget and credit counseling agency described in 11 U.S.C. 111(a). The U.S. Trustee Program publishes the approved agencies by district. Subsections (h)(2) through (h)(4) supply narrow exceptions.
• When is the discharge entered? Federal Rule of Bankruptcy Procedure 4004(a) sets the deadline for a complaint objecting to discharge at 60 days after the first date set for the 341(a) meeting, and Rule 4007(c) sets the same period for a complaint under 11 U.S.C. 523(c). Rule 4004(c) states that when those times expire the court must promptly grant the discharge, subject to listed exceptions such as a pending objection, an unpaid filing fee, or a missing financial management course certificate.
• Which debts are not discharged? 11 U.S.C. 523(a) excepts categories of debt from discharge, including certain taxes and customs duties under 523(a)(1), debts obtained by false pretenses or actual fraud under 523(a)(2), domestic support obligations under 523(a)(5), educational loans under 523(a)(8) absent undue hardship, and debts for death or personal injury from operating a vehicle while unlawfully intoxicated under 523(a)(9). Whether a particular tax year falls inside 523(a)(1) is a dated question answered from transcripts and filed returns.