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Chapter 7 Bankruptcy

Chapter 7 Process 

Chapter 7 bankruptcy is liquidation or straight bankruptcy. If you are qualify, you can receive a Chapter 7 discharge every 8 years. The entire Chapter 7 Bankruptcy process takes about 3 to 4 months from start to finish in a normal case.

Filing Chapter 7 invokes the automatic stay and gives you immediate relief from your creditors, stops lawsuits, judgments, and garnishments. Typical debts that can be discharged are credit cards, old rent bills, personal loans, old cell phone bills, pay day loans, vehicle repossessions, debts from a foreclosure, medical bills, some taxes, as well as numerous other types of debt.

In order to qualify for Chapter 7 you must pass the means test. The means test divides filers into below median and above median incomes.  A debtor that fails the means test for Chapter 7 may be able to file for Chapter 13 instead. It is extremely important to hire an attorney who is knowledgeable about bankruptcy rules.

One major difference between Chapter 7 and Chapter 13 is that you cannot voluntarily dismiss a Chapter 7. Chapter 7 is liquidation bankruptcy- once assets are found above the exemptions, you cannot simply ask for your case to be dismissed. Once you are stuck in your asset Chapter 7 case, property can be liquidated. The consequences could be really bad with unintended results if you do not hire a lawyer who knows how to protect your assets and financial well being. Technically, any attorney could handle your Chapter 7, but it is not a good idea just to get any lawyer to do so.