CHAPTER 7 BANKRUPTCY

Chapter 7 bankruptcy is liquidation bankruptcy. Typical Chapter 7 filers pass an insolvency test and they don’t have significant assets. Those who are eligible can receive a Chapter 7 discharge every 8 years. The entire Chapter 7 Bankruptcy process takes about 4 months from the day it’s filed to the discharge in a typical case.

Chapter 7 does require financial eligibility using different tests. You may need to seek relief under Chapter 13 if you are ineligible for 7 due to being above-median income, or if you don’t pass an insolvency test.

Chapter 7 is means tested, therefore your income and financial picture affect whether you are eligible for Chapter 7. The means test divides filers into below median and above median incomes.  A debtor that fails the means test for Chapter 7 can usually file Chapter 13 instead. Chapter 13 bankruptcy is an alternative for those who do not qualify for chapter 7 bankruptcy.

Filing Chapter 7 invokes the automatic stay and gives you immediate relief from your creditors, stops lawsuits, and wage garnishments.

Typical debts that can be discharged in Chapter 7 are credit cards, old rent bills, personal loans, old cell phone bills, pay day loans, vehicle repossessions, debts from a foreclosure, medical bills, as well as numerous other types of debt.  Not all types of debt can be discharged in Chapter 7. Chapter 13 offers a wider range of debts that can be discharged than Chapter 7.

You need an attorney who can represent your interests in a legal proceeding through a legal process, in order to give you the best chance at claiming the full benefits of Chapter 7 bankruptcy.

Filing for bankruptcy is a serious legal proceeding that can severely affect your financial life and overall well being. It is important to have an experienced expert help you through the process.