Checklist · Bankruptcy

Preparing and Filing a Consumer Bankruptcy Case: A Practical Checklist

11 U.S.C. § 547

Type: Checklist
Jurisdiction: National
Date: 2025-07-26
Topic: Bankruptcy

This checklist prepares and files a consumer bankruptcy case and follows it through post-discharge credit repair. Phase 1 is the stop-and-freeze instruction that prevents most trustee litigation, and Phase 2 is the document gathering that follows it. Phase 3 is the asset and exemption analysis, and Phase 4 is the debt analysis including what will not be discharged. Phase 5 covers chapter selection and the filing date, which is the most consequential decision in the case. Phases 6 and 7 cover the petition, the schedules, the filing itself, and the meeting of creditors. Phase 8 covers secured debt decisions and the Chapter 13 plan, and Phase 9 covers discharge and the credit repair almost nobody does. Four model letters, a timing table, and a ranked failure-mode list close the checklist.

Preparing and Filing a Consumer Bankruptcy Case: A Practical Checklist

Bankruptcy > Consumer Bankruptcy | Published 26 July 2025 - Updated 10 November 2025 | UpLaw - uplaw.us

Phase 1 has one instruction in it: ordinary living expenses continue, and nothing else moves. It prevents more damage than every other phase combined.

Keywords: stop and freeze, documents, exemptions, debts, chapter choice, filing, secured debt, discharge

How to use this checklist

Nine phases with - [ ] items and a Why it matters, and the traps note under each.

Doctrine is in Consumer Bankruptcy: A Comprehensive Guide to Chapter 7, Chapter 13, Exemptions, and Discharge. The narrative is The Fresh Start, Honestly Described: What Consumer Bankruptcy Does and Does Not Do. The forms are in The Consumer Bankruptcy Toolkit.

Phase 1 — Stop and freeze

[ ] Do not repay any relative, friend, or business associate.
[ ] Do not liquidate a retirement account to pay debts.
[ ] Do not transfer, sell, or retitle any property.
[ ] Do not add or remove a name from a deed or account.
[ ] Stop using credit cards and taking cash advances.
[ ] Do not take a consolidation loan secured by the home.
[ ] Do not sell property to a relative at any price without advice.
[ ] Continue ordinary living expenses, mortgage, rent, car, and utilities normally.
[ ] Note any transfer or unusual payment already made in the last two years.
[ ] Note any payment to a relative in the last year.

Why it matters, and the traps. 11 U.S.C. § 547 lets the trustee recover payments to a creditor in the ninety days before filing — and one year for an insider. Repaying a parent does not help them; the trustee sues them.

11 U.S.C. § 548 and 11 U.S.C. § 544 reach transfers for less than reasonably equivalent value, with recovery from transferees under 11 U.S.C. § 550 — and a transfer with actual intent to defraud can support denial of the discharge entirely under 11 U.S.C. § 727.

And cashing out a retirement account converts the largest exempt asset most filers have into payment of debts about to be discharged.

Phase 2 — Documents

[ ] All three credit reports — free under 15 U.S.C. § 1681g.
[ ] Six months of pay records, for the means test at 11 U.S.C. § 707.
[ ] Two years of tax returns, and a list of any unfiled years.
[ ] Recent bank statements for every account.
[ ] Mortgage statements and any payoff or reinstatement quote.
[ ] Vehicle loan statements and a valuation.
[ ] Retirement and investment account statements.
[ ] Deeds, titles, and insurance declarations.
[ ] Any lawsuit, judgment, garnishment, or levy paperwork.
[ ] Support orders and arrears statements.
[ ] A written list of every debt, including debts not on the credit reports — medical bills, personal loans, and money owed to individuals.

Why it matters, and the traps. The credit reports list creditors the debtor has forgotten, and an omitted creditor without notice may not be discharged — 11 U.S.C. § 342 and 11 U.S.C. § 523.

And unfiled tax returns are never dischargeable. File them before the case, which also usually reduces the liability where substitutes for return were prepared.

Phase 3 — Assets and exemptions

[ ] List everything owned — 11 U.S.C. § 541 sweeps broadly, including causes of action and tax refunds.
[ ] Value each item honestly, and note the loan against it. Equity is what matters.
[ ] Determine whether state or federal exemptions apply — and check the residency rule, because a recent move may mean the prior state's exemptions govern.
[ ] Apply the homestead exemption to any equity in the residence.
[ ] Apply the vehicle exemption.
[ ] Apply exemptions for household goods, clothing, tools of the trade, and the wildcard.
[ ] Confirm retirement accounts are protected — they usually are, and broadly.
[ ] Identify any non-exempt equity, which a Chapter 7 trustee may realize.
[ ] Identify any judicial lien impairing an exemption, avoidable under 11 U.S.C. § 522.
[ ] Identify any nonpossessory, nonpurchase-money security interest in household goods or tools, also avoidable.
[ ] Note anything expected within the post-filing window — an inheritance, a settlement, life insurance proceeds — which becomes property of the estate.

Why it matters, and the traps. Lien avoidance under 11 U.S.C. § 522 is chronically underused. A judgment lien on a home that impairs the homestead exemption can frequently be removed entirely, and it is frequently worth more than anything else in the case.

And on how the exemption is claimed, Schwab v. Reilly, 560 U.S. 770 (2010) held that claiming a stated dollar amount within the limit does not require a trustee objection to preserve the estate's interest in excess value.

Phase 4 — Debts

[ ] Separate secured from unsecured, and priority from general — 11 U.S.C. § 507.
[ ] Identify domestic support obligations — never dischargeable.
[ ] Analyze taxes against the timing rules; note any trust fund taxes and any recorded tax lien, both of which survive.
[ ] Identify student loans, and whether an undue hardship adversary proceeding is warranted.
[ ] Check whether any private student loan falls outside the exception — a loan exceeding cost of attendance may be ordinarily dischargeable.
[ ] Identify any debt from intoxicated operation of a vehicle, or from willful and malicious injury — nondischargeable.
[ ] Identify fines and penalties owed to a governmental unit.
[ ] Flag any debt a creditor may claim was obtained by fraud or a false written financial statement — Lamar, Archer & Cofrin, LLP v. Appling, 584 U.S. 709 (2018).
[ ] Note that a partner's fraud can bind an innocent debtor — Bartenwerfer v. Buckley, 598 U.S. 69 (2023).
[ ] Identify any co-signed debt, which may support Chapter 13's co-debtor stay at 11 U.S.C. § 1301.
[ ] Total what will actually be discharged, and confirm the case is worth filing.

Why it matters, and the traps. A filer whose debts are largely nondischargeable may still benefit — but should choose knowingly rather than discover it afterward.

And the private student loan question is the most underused argument in this phase. It requires reading the note against the school's published cost of attendance for the year.

Phase 5 — Chapter and timing

[ ] Run the means test at 11 U.S.C. § 707.
[ ] Note that "current monthly income" averages the six full months before filing — so the filing month changes eligibility.
[ ] Note Ransom v. FIA Card Services, N.A., 562 U.S. 61 (2011): no vehicle ownership allowance where there is no loan or lease.
[ ] Confirm eligibility and debt limits under 11 U.S.C. § 109.
[ ] Are there arrears to cure? If yes, Chapter 13.
[ ] Is there non-exempt equity the client wants to keep? If yes, Chapter 13.
[ ] Is there a co-signer to protect? If yes, Chapter 13.
[ ] Is there priority tax or support debt to pay over time? If yes, Chapter 13.
[ ] Otherwise, Chapter 7.
[ ] Set the filing date deliberately — the income window, the preference reach-back, the tax timing rules, and any expected inheritance all move with it.
[ ] Note any pending foreclosure sale or repossession, which makes the date urgent.

Why it matters, and the traps. The filing date is the single most consequential decision in the case.

And Chapter 13 is harder than it looks — five years of payments requires five years of stable income, a substantial share of plans fail, and modification under 11 U.S.C. § 1329 or conversion under 11 U.S.C. § 1307 should be discussed at the outset, subject to the good-faith limit of Marrama v. Citizens Bank of Massachusetts, 549 U.S. 365 (2007).

Phase 6 — The petition and schedules

[ ] Complete credit counseling from an approved provider — required by 11 U.S.C. § 109.
[ ] Prepare the petition.
[ ] Prepare schedules of assets and liabilities, claiming exemptions under 11 U.S.C. § 522.
[ ] Prepare the statement of financial affairs, disclosing every transfer and every payment to an insider in the applicable look-back periods.
[ ] Prepare schedules of income and expenses and the means test calculation.
[ ] Prepare the creditor matrix — every creditor, with a correct address.
[ ] Prepare the statement of intention for secured property under 11 U.S.C. § 521.
[ ] For Chapter 13, prepare the plan under 11 U.S.C. § 1322.
[ ] Review everything with the client, line by line, before signing.
[ ] Confirm venue under 28 U.S.C. § 1408 and 28 U.S.C. § 1409.

Why it matters, and the traps. The schedules are signed under penalty of perjury, and 11 U.S.C. § 727 permits denial of the discharge for false oaths, concealment, and failure to keep records. A § 727 objection defeats the entire case, not one debt.

Disclose every transfer, including the ones that look bad. Non-disclosure is far worse than the transfer, and the trustee will find it.

Phase 7 — Filing and the meeting

[ ] File, and note the filing date — the stay under 11 U.S.C. § 362 attaches immediately.
[ ] Notify any garnishing creditor, employer, and levying sheriff the same day.
[ ] Notify anyone with a scheduled foreclosure or repossession.
[ ] Confirm notice to creditors under 11 U.S.C. § 342.
[ ] Provide the trustee with requested documents before the meeting.
[ ] Attend the meeting of creditors under 11 U.S.C. § 341, with photo identification and proof of the taxpayer identification number.
[ ] Answer the trustee's questions truthfully and briefly.
[ ] Watch for any motion for relief from stay under 11 U.S.C. § 361 and 11 U.S.C. § 362.
[ ] Watch for objections to exemptions and for adversary proceedings under 11 U.S.C. § 523.
[ ] Note any property abandoned under 11 U.S.C. § 554.
[ ] Complete the financial management course before discharge.

Why it matters, and the traps. Garnishments do not stop by themselves. The stay is automatic in law and requires a phone call and a letter in practice — to the creditor, the employer's payroll department, and the sheriff.

And amounts garnished in the ninety days before filing may be recoverable as a preference under 11 U.S.C. § 547.

Phase 8 — Secured debt and the plan

[ ] For each secured item, choose: surrender · redeem under 11 U.S.C. § 722 · or reaffirm under 11 U.S.C. § 524.
[ ] Compare the loan balance to the collateral's value before choosing anything.
[ ] Do not reaffirm a deeply underwater loan.
[ ] Ask whether the district and lender permit simply continuing to pay without reaffirming.
[ ] For redemption, arrange lump-sum financing if needed.
[ ] File lien avoidance motions under 11 U.S.C. § 522 for judicial liens impairing exemptions.
[ ] In Chapter 13, confirm the plan cures arrears while maintaining the regular payment.
[ ] In Chapter 13, cram down eligible secured claims under 11 U.S.C. § 506.
[ ] In Chapter 13, strip any wholly unsecured junior mortgage.
[ ] Confirm the plan under 11 U.S.C. § 1325, and begin payments on time.
[ ] Calendar the option to modify under 11 U.S.C. § 1329 if income changes.

Why it matters, and the traps. Reaffirmation is the one act that voluntarily gives back the discharge on a debt. If the collateral is lost afterward, the deficiency is owed and no further discharge is available for years.

And note Dewsnup v. Timm, 502 U.S. 410 (1992): a partially secured lien cannot be stripped down in Chapter 7 — which is why a homeowner with a partially secured second mortgage may need Chapter 13.

Phase 9 — Discharge and after

[ ] Confirm the discharge — 11 U.S.C. § 727 or 11 U.S.C. § 1328.
[ ] Keep the discharge order permanently.
[ ] Pull all three credit reports ninety days after discharge.
[ ] Dispute every account still showing a balance under 15 U.S.C. § 1681i, citing the accuracy requirement at 15 U.S.C. § 1681e and reporting limits at 15 U.S.C. § 1681c.
[ ] Report any post-discharge collection attempt — it violates 11 U.S.C. § 524 and may violate 15 U.S.C. § 1692e.
[ ] Note the anti-discrimination protections at 11 U.S.C. § 525.
[ ] Consider reopening the case to add an omitted creditor or avoid a missed lien.
[ ] Calendar the waiting period before another discharge is available.
[ ] Rebuild credit deliberately — a secured card, on-time payments, low utilization.
[ ] Keep the schedules and the discharge order together with the case number.

Why it matters, and the traps. The credit report cleanup is the single most valuable post-discharge act and almost nobody does it. Discharged accounts reported as owing suppress a score for years, and the remedy is a dispute letter.

Model letters

A. Stay notice to a garnishing creditor and employer

"Re: [debtor] · Case No. [] · Filed [date] in the United States Bankruptcy Court for the [] District of [___].

A bankruptcy petition was filed on [date]. The automatic stay of 11 U.S.C. § 362 is in effect.

All garnishment must cease immediately. To the employer: please stop withholding as of the next payroll and remit no further funds to the creditor. To the creditor: amounts garnished within ninety days before the filing may be avoidable as preferential transfers under 11 U.S.C. § 547, and demand is made for their return.

Violation of the stay is sanctionable. Direct all further communication to counsel."

B. Post-discharge credit dispute

"Re: [consumer] · File []. **The following accounts were discharged in bankruptcy on [date], Case No. [], and are being reported inaccurately as owing a balance:** [creditor · account · reported balance].

A copy of the discharge order and the schedule listing each creditor are enclosed. Each account must be reported as discharged in bankruptcy with a zero balance.

I request reinvestigation under 15 U.S.C. § 1681i and correction consistent with the accuracy requirement of 15 U.S.C. § 1681e."

C. Notice of discharge violation

"Re: [debtor] · Case No. [___]. The debt you are attempting to collect was discharged on [date]. Your [letter / call] of [date] violates the discharge injunction of 11 U.S.C. § 524.

Cease all collection activity immediately, correct any credit reporting, and confirm in writing within [___] days. Continued violation will be brought to the court's attention, and the remedy includes contempt sanctions and fees. [Your conduct may also violate 15 U.S.C. § 1692e and 15 U.S.C. § 1692f.]"

D. Client instruction letter

"Until your case is filed and while it is pending, please do the following.

Do not repay any relative, friend, or business associate · do not withdraw from a retirement account · do not transfer, sell, or retitle any property · do not add or remove anyone from a deed or account · do not use credit cards or take cash advances · do not take out a consolidation loan.

Do continue paying rent or mortgage, car payments, utilities, insurance, and ordinary living expenses normally. Do tell me immediately if you are sued, garnished, or receive notice of a foreclosure or repossession. Do tell me if you expect an inheritance, settlement, bonus, or tax refund.

If anyone advises you to move money, call me first."

The timing table

Period	Length	Runs from	Why it matters
Current monthly income window	6 full months before filing	The filing month	Determines means test eligibility
Preference — ordinary creditor	90 days before filing	Filing	Payments recoverable, § 547
Preference — insider	1 year before filing	Filing	Repaying a relative makes them a defendant
Fraudulent transfer — federal	2 years	Filing	§ 548
Fraudulent transfer — state, via § 544	Longer	Filing	Reaches back further
Post-filing estate window	Defined period after filing	Filing	An inheritance or settlement becomes estate property
Statement of intention	Shortly after filing	Filing	Secured property elections, § 521
Reaffirmation deadline	Before discharge	Filing	The agreement must be filed
Objections to exemptions and § 523 complaints	Set periods	The meeting of creditors	Deadlines a debtor benefits from
Chapter 7 discharge	~4 months	Filing	§ 727
Chapter 13 discharge	3–5 years	Confirmation	§ 1328, at completion

Every row in the top half moves with the filing date, which is why Phase 5's timing decision is the most consequential one in the case.

Who does what

The client. Phase 1 — the stop-and-freeze — and Phase 2's documents. Neither requires a professional, and Phase 1 prevents more damage than everything counsel does afterward.

Counsel. Phases 3 through 8, and particularly the exemption analysis, the chapter choice, and the filing date. The three questions that decide most cases: is there non-exempt equity · are there arrears to cure · does the means test permit Chapter 7.

A tax professional, where returns are unfiled or the dischargeability of taxes is in issue — see Responding to an IRS Notice, Audit, or Collection Action: A Practical Checklist and Tax Controversy for Individuals: A Comprehensive Guide to Notices, Audits, Appeals, and Collection.

A student loan analysis, where an adversary proceeding or the private-loan argument may apply — see Student Loans: A Comprehensive Guide to Repayment, Default, Forgiveness, and Discharge and Fixing a Student Loan Problem: A Practical Checklist.

And the client again, ninety days after discharge, for the credit report cleanup in Phase 9 — which nobody does and which is worth years of score.

Failure modes, ranked

Repaying a relative before filing.
Cashing out a retirement account to pay dischargeable debt.
Transferring or retitling property, risking recovery and the discharge itself.
Omitting a creditor, whose debt may survive.
Filing before the income window, the tax timing, or an expected asset favors it.
Choosing Chapter 7 when arrears must be cured.
Reaffirming a deeply underwater secured loan.
Not filing missing tax returns first, leaving those years permanently nondischargeable.
Not filing lien avoidance motions for judicial liens impairing exemptions.
Failing to notify the employer and sheriff of the stay, so the garnishment continues.
Not seeking return of preferential garnishments from the ninety days before filing.
Never bringing the student loan adversary proceeding, including where a private loan may fall outside the exception.
Believing the discharge removes liens.
Never pulling a credit report after discharge.

Items 1 through 3 are prevented by a single letter, sent at the first meeting — Model Letter D.

Preparing and Filing a Consumer Bankruptcy Case: A Practical Checklist

How to use this checklist

Phase 1 — Stop and freeze

Phase 2 — Documents

Phase 3 — Assets and exemptions

Phase 4 — Debts

Phase 5 — Chapter and timing

Phase 6 — The petition and schedules

Phase 7 — Filing and the meeting

Phase 8 — Secured debt and the plan

Phase 9 — Discharge and after

Model letters

A. Stay notice to a garnishing creditor and employer

B. Post-discharge credit dispute

C. Notice of discharge violation

D. Client instruction letter

The timing table

Who does what

Failure modes, ranked

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