Costs

• As of 2010, it costs $299 to file Chapter 7 bankruptcy, according to the United States Bankruptcy Court Eastern District of Missouri. These costs are usually payable upfront; some debtors may qualify for an installment payment plan or total forgiveness of bankruptcy court fees. You do not have to hire a Missouri bankruptcy attorney to file your case, but if you do so, these costs are entirely separate from your bankruptcy court filing fees.
  
  

Income Requirements

• You usually must make less than Missouri's median income to qualify for this type of bankruptcy protection, according to the book "How to File for Chapter 7 Bankruptcy." As of 2010, the median income for a single person was $39,504, according to the United States Bankruptcy Court Eastern District of Missouri. A two-person household could make up to $51,385 and still qualify for Chapter 7 bankruptcy, according to the United States Bankruptcy Court Eastern District of Missouri.
  
  

Significance

• Once a Missouri bankruptcy judge approves your Chapter 7 petition, included creditors can no longer legally pursue your assets for your debts. As soon as you file Chapter 7, all of your creditors must stop contacting you; they cannot call you, write letters, repossess your car, foreclose upon your house, sue you or garnishee your wages. If your wages are already being garnisheed, filing bankruptcy immediately stops such action. However, remember that once your Chapter 7 case is finalized you will likely need to relinquish any property associated with secured loans; this may include cars or your mortgaged home depending upon the Missouri bankruptcy judge's ruling. Under Missouri law, you can claim an $8,000 "homestead exemption" that may help protect some of your interests in real estate, according to the United States Bankruptcy Appellate panel.
  
  

Filing Requirements

• To successfully petition for Chapter 7 bankruptcy, you must complete a federally approved credit counseling program, according to the Federal Trade Commission. These sessions usually last about 60 to 90 minutes. Also, you must complete forms regarding your income, assets and debts, according to the United States Bankruptcy Court Eastern District of Missouri.
  
  

Exceptions

• You cannot include child support, alimony, court fines and lawsuits related to drunken driving in Chapter 7, according to the book "How to File for Chapter 7 Bankruptcy." Also, in almost every case you must repay your government-issued student loans; exceptions include if you have a serious disability or your college is now defunct.