What Can You NOT Do After Filing Chapter 7?

Filing Chapter 7 bankruptcy can feel like a huge weight off your shoulders. You finally get that sense of relief, knowing there’s a way to deal with crushing debt and start over.

But filing doesn’t mean you’re suddenly free to do whatever you want.

Once the case is in motion, there are rules you’ve got to follow. If you step outside the lines, you could mess up the process, lose your discharge, or even land in hot water with the court.

In this post, we’ll go over What can you not do after filing Chapter 7.

#1. You Can’t Pick And Choose Who To Pay

Once your case is filed, you don’t get to decide who gets money and who doesn’t. The court takes control over how debts are handled.

That means you can’t slip cash to your cousin because you feel bad about borrowing from him, or pay off a buddy’s loan just because you’d rather square things with him first.

It might feel strange, but the whole point is fairness.

The trustee makes sure all creditors are treated the same way. If you try to favor someone, the court can actually claw back that money and redistribute it.

So, as much as you might want to take care of personal IOUs, you have to let the process work itself out.

Also Read: Can Personal Loans Be Included in Bankruptcy?

#2. You Can’t Sell, Give Away, Or Transfer Property Without Approval

Another big no-go is moving around property once your Chapter 7 case is active.

You can’t sell your car to a friend, give away jewelry to a family member, or “loan” assets to someone else so it looks like you don’t own them anymore.

That’s considered hiding or transferring assets, and the trustee will not take it lightly.

Some things you own may be exempt, meaning you get to keep them. But for nonexempt items, they’re technically part of the bankruptcy estate. The trustee has control over those.

If you move them around without permission, it could blow up your case.

So, it’s always better to be upfront and check first before making any decisions with property once the filing is in.

#3. You Can’t Get New Debt Carelessly

A fresh start is what Chapter 7 is all about, but it doesn’t give you a green light to go wild with credit cards.

If you go out tomorrow and start swiping for luxury items or taking out new loans, you’ll put yourself in a bad spot. Creditors and the court might see it as bad faith.

In some cases, debts you rack up right before filing can even be excluded from discharge.

It’s also tough to get new credit while the case is open anyway. Lenders know you’re in bankruptcy, so most won’t line up to offer loans. And honestly, you don’t want to fall right back into the same trap you just escaped.

This period is about stabilizing, not piling on more.

Also Read: Chapter 7 Allowable Living Expenses

#4. You Can’t Ignore Trustee Or Court Requests

After filing, you’ll get some homework. You’ll need to attend the 341 meeting, also called the meeting of creditors, where you answer a few questions under oath.

The trustee might ask for more documents like bank statements, pay stubs, tax returns, or proof of certain expenses.

You can’t just brush this off. If you don’t show up or refuse to provide what’s asked, your case can be dismissed.

That means no discharge, no clean slate, and all the stress of debt comes crashing back.

So, as annoying as it may be to dig up old paperwork, just get it done. Respond on time and keep the trustee in the loop. It’s way better to handle it upfront than deal with the fallout later.

#5. You Can’t Lie Or Leave Things Out

This one is simple: honesty is the backbone of bankruptcy.

You’ve got to lay it all out – debts, assets, income, everything. If you “forget” to list something or decide not to mention an account, you’re setting yourself up for trouble.

The trustee’s job is to dig through your finances. They’ll spot inconsistencies, and if they think you’re hiding things, your discharge can be denied.

Even worse, it could get referred for fraud investigation. It’s not worth the risk.

It might feel uncomfortable to be that transparent, but remember, the court has seen it all before.

Full disclosure is the only way to make the process smooth and get the relief you’re looking for.

#6. You Can’t Keep Secured Property Without Reaffirming Or Surrendering

If you’ve got a house, car, or anything tied to a loan, you can’t just keep it without making a choice after filing Chapter 7.

Chapter 7 clears unsecured debts like credit cards and medical bills, but secured debts work differently. If you want to keep that property, you’ll need to stay current on payments and, in many cases, reaffirm the debt.

That basically means you agree to keep paying under the same terms.

If you don’t, the lender has the right to repossess or foreclose, even if you’ve been paying.

Your other option is to surrender the property. That sounds harsh, but sometimes it’s the cleanest way to truly start fresh.

You can’t just hang on to secured property and stop paying. It doesn’t work that way.

Also Read: How Long After Chapter 7 Discharge Is the Case Closed?

#7. You Can’t File Chapter 7 Again Right Away

One last thing you can not do after filing Chapter 7: you can’t just hit repeat on Chapter 7 whenever you want. Once you get a discharge, you’re locked out for a while.

In fact, you have to wait eight years from the date you filed before you can file another Chapter 7.

That means you need to use this fresh start wisely. Budget carefully, build good habits, and try to set yourself up so you don’t end up back in the same spot.

It’s a one-shot deal for a long stretch, so make it count.

Bottom Line

Filing Chapter 7 is like hitting reset on your finances, but it comes with boundaries you’ve got to respect.

You can’t favor certain creditors. You can’t move property around without approval. You can’t hide assets, lie, or ignore the trustee. And you can’t keep secured stuff unless you keep paying.

The good news? None of these rules are here to trip you up. They’re in place to make sure the process is fair and that your fresh start really sticks.

If you’re honest, responsive, and careful, you’ll come out the other side in much better shape.

Think of Chapter 7 as the road back to stability. Stay in your lane, follow the signs, and before long, you’ll be moving forward debt-free.