Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is straight liquidation. The entire process takes approximately 3 to 4 months from filing date to discharge. You can eliminate most types of unsecured debt, such as credit cards, repossession deficiencies, medical bills, eviction debt, personal loans, business loans, payday loans, utility bills, and some taxes. It will stop wage garnishments, bank levies, lawsuits, and judgments.

Your household must be below median income for your state or you must pass the means test to qualify for Chapter 7 relief; otherwise you must file Chapter 13 bankruptcy or relief under another chapter.

Some debts cannot be discharged in a Chapter 7, including, but not limited to, child support, alimony, criminal restitution and student loans.