Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most common type of bankruptcy filed by individuals. A trustee is assigned to question the filer under oath and to liquidate any assets that the filer cannot protect.

Benefits of filing Chapter 7 bankruptcy.

Obtain your “fresh start” by discharging most debts (there are some exceptions, e.g. most student loans, child or spousal support, some taxes). Stop wage garnishment. Stop creditor calls and lawsuits. Begin the process of rebuilding your credit.

Chapter 7 bankruptcy filers usually keep all of their property.

Chapter 7 is sometimes known as a liquidation bankruptcy, which implies that your assets will be sold to pay your creditors. However, laws called “exemptions” allow you to protect a significant amount of assets. Most Chapter 7 bankruptcy cases are “no-asset” cases, meaning that bankruptcy filers usually are able to keep everything they own (including a home and vehicle).

Qualifying to file for Chapter 7 bankruptcy.

Chapter 7 filers must pass a “means test” that involves calculations using monthly income and expense figures. There are a number of other factors that also affect whether Chapter 7 is available and a good fit for you, which I can review with you during a consultation.

Cost of filing Chapter 7.

I offer a reasonable and affordable attorney fee for Chapter 7 cases. Once I evaluate your specific situation during a consultation, I will be able to quote you a Chapter 7 bankruptcy fee.

Chapter 7 Alternatives.

Those who do not qualify to file for Chapter 7 may consider Chapter 13 bankruptcy, which involves a repayment plan. Chapter 13 is especially valuable for people with mortgage arrears who wish to avoid foreclosure.

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