Bankruptcy Basics
Bankruptcy is a legal process designed to help individuals and businesses eliminate or restructure unmanageable debt. It's governed by federal law and overseen by federal courts.
MasConcepts' Approach to Bankruptcy Support
We believe that every client does better when they understand the process, not just the paperwork. Whether you're working with an attorney or preparing documents yourself, education comes first.
Who We Work With
Attorney Offices
We work behind the scenes as an extension of your practice, handling the detailed, time-consuming parts of bankruptcy case preparation so your attorneys can focus on advising clients and appearing in court.
- Petition and schedule preparation
- Exemption calculations
- Means test analysis
- Case organization and document support
The Public (Pro Se Filers)
For individuals who qualify to represent themselves and need accurate paperwork, we provide bankruptcy petition preparation services. As petition preparers, we are not attorneys and cannot give legal advice — which is why we built these educational guides.
- Accurate petition and schedule preparation
- Plain-language guides to the filing process
- Tools to help you understand your own case
Why Education Matters
Whether you're a client of an attorney partner or filing pro se, understanding the process changes the outcome. Clients who know what to expect ask better questions, avoid common mistakes, and feel less overwhelmed by a process that can otherwise seem opaque.
That's what this guide is designed to do: give you the working knowledge to understand your options with confidence.
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Debt Payoff Options Calculator
Compare the total cost and time required under three different strategies: paying minimum payments, taking out a consolidation loan, or filing Chapter 7 bankruptcy.
How This Works
Minimum Payments: Based on your current debt and interest rate, assuming you make only minimum payments each month.
Consolidation Loan: Assumes a 5-year consolidation loan at 10% interest. Actual rates vary based on credit and lender.
Chapter 7 Bankruptcy: Estimates filing and attorney fees, with debt discharged in 4-6 months. Non-dischargeable debts (student loans, child support, etc.) are not included in this estimate.
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Chapter 7 Bankruptcy FAQ
Answers to the questions clients ask most before filing.
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The Means Test
Eligibility for Chapter 7 bankruptcy is determined by a "means test" — a calculation that compares your household income to your state's median family income. Below, select your state to see the applicable median income figures.
If your household income is below your state's median, you generally pass the means test and can file Chapter 7. If your income is above the median, a more detailed calculation determines whether you have "disposable income" that could repay creditors, which may require Chapter 13 instead.
The median income figures change regularly. The U.S. Trustee Program publishes the official numbers used to complete the Form 122A and 122C means test forms — select your filing period, open the Median Family Income table, then find your state and household size.
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Bankruptcy Exemptions by State
Exemptions protect property from your bankruptcy estate. Select your state below to see what you can keep under your state's bankruptcy exemption laws.
Understanding Exemptions
Exemptions are dollar amounts or categories of property protected from bankruptcy. Each state sets its own exemption amounts. Some states are generous (unlimited homestead exemptions in states like Florida, Texas, and Iowa); others are more restrictive. Some states allow filers to choose between state and federal exemptions.
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Find Your Bankruptcy Court
Enter an address or ZIP code to identify which federal bankruptcy court has jurisdiction over that location.
How This Works
Bankruptcy cases are filed in federal district courts. Your case's venue — which court has jurisdiction — is based on your residence or principal place of business. This tool uses geocoding to pinpoint your address and spatial analysis to determine which of the 94 federal districts covers that location.
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Filing Without an Attorney
Filing on your own — pro se — is allowed in every federal bankruptcy district. It is also unforgiving: the court holds a self-represented filer to the same standards as a lawyer. This step covers the forms, the help you are allowed to pay for, and the two appointments you cannot skip.
What You Take On
Filing pro se means you are responsible for everything an attorney would normally handle: completing the forms, gathering documents, filing with the correct court, attending the meeting of creditors, and following every local rule.
- You are allowed to file pro se, but the court will hold you to an attorney's standards.
- Deadlines matter. Missing one can get your case dismissed.
- Accuracy matters. Everything you file is signed under penalty of perjury.
Bankruptcy Forms
Bankruptcy runs on a specific set of federal forms — the voluntary petition, Schedules A through J, the Statement of Financial Affairs, and the means test forms — plus any local forms your district requires. The official forms are free. No one should charge you for the blank forms themselves.
Some filers prefer software that walks them through the forms in an interview format. This is optional and never required:
Bankruptcy Petition Preparers
A bankruptcy petition preparer (BPP) is a non-attorney who types your forms from information you supply. They are regulated federally under 11 U.S.C. § 110. Knowing the line they cannot cross protects you:
| A preparer may | A preparer may not |
|---|---|
| Type your forms from the information you give them | Give you legal advice of any kind |
| Charge a reasonable fee for that typing service | Choose which exemptions you claim |
| Give you a copy of every document they prepare | Tell you which chapter to file under |
| Sign and disclose their identity on your filing | Represent you in court or at the 341 meeting |
| — | Collect or handle your court filing fee |
If you hire one, they must give you Official Form 119 — Bankruptcy Petition Preparer’s Notice, Declaration, and Signature before preparing any document. It states in writing that they are not a lawyer and cannot give legal advice.
Federal law requires a preparer’s fee to be reasonable for typing services only, and every fee collected must be disclosed to the court along with any unpaid balance. Many districts set a presumptive maximum fee by local rule or standing order, while others do not — check your own district. A court may order a preparer to refund an excessive fee, and may impose penalties if the preparer crossed into the unauthorized practice of law.
Required Credit Counseling
Before you file, you must complete a credit counseling session with an agency approved by the U.S. Trustee Program. The session is usually short and can normally be taken online or by phone. Your certificate of completion gets filed with your case — without it, the court can dismiss the filing.
Approval is district-specific, so confirm the agency is approved for the district where you will file.
The 341 Meeting of Creditors
Every filer must attend a Section 341 meeting of creditors. It is not a hearing and there is no judge. A trustee verifies your identity and asks questions under oath about the paperwork you filed. Creditors may attend but usually do not. Many districts now hold these meetings by video.
Bring government-issued photo identification and proof of your Social Security number — a trustee who cannot verify both will normally continue the meeting to another date.
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How to Find an Attorney
Step 7 covered what filing alone demands of you. If that is more than you want to take on, this step points you at the official starting place in your state. Every link below goes to a state bar association — not a paid directory or a lead-generation site.
What to Ask Before You Hire
A referral is a starting point, not a decision. Most bar services cap the first consultation at a modest fee, so use it well:
- How many Chapter 7 cases do you file a year? Bankruptcy is volume work; experience shows.
- What is the flat fee, and what does it exclude? Ask specifically whether the $338 court filing fee, the two required courses, and any adversary proceeding are inside or outside the quote.
- Who attends the 341 meeting with me? Sometimes it is an associate rather than the lawyer you met.
- Which exemption system do you recommend for me, and why? In a state offering a choice, the answer reveals how carefully they have read your situation.
- What could go wrong in my case? A candid lawyer will name something.
Typical Chapter 7 attorney fees run roughly $1,000 to $3,000 depending on district and complexity, as shown on the debt calculator in Step 2. Bar referral services generally cap only the initial consultation, not the full representation. Get the full fee in writing before you engage anyone.
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Contact Us
If anything in this guide raised a question about your own situation, send it over. Tell us roughly where you stand and we will point you toward the right next step — whether that is filing pro se with preparer support, or a referral out to an attorney.
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