Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is often referred to as a "simple" or "straight" bankrupcty. Filing bankruptcy under Chapter 7 of the Bankruptcy Code allows you to eliminate your unsecured debt and in the vast majority of cases keep your home and car.

Chapter 7 Bankruptcy Overview

Chapter 7 Bankruptcy is the most common and familiar type of personal bankruptcy. In this type of bankruptcy your unsecured debts (typically credit card debt) is wiped out by the bankruptcy court. The Bankruptcy Trustee may sell your property in order to satisfy your creditors. Liquidation of your assets in this fashion is not common in the majority of Chapter 7 bankruptcy cases. Chapter 7 bankruptcy process normally takes from four to six months. The bankruptcy court filing fee is currently $299.00 and rarely requires more then one appearance in court.

Who Can File Chapter 7 Bankruptcy

In order to qualify for Chapter 7 Bankruptcy you must be able to satisfy specific guidelines. Depending on where you reside, your income cannot be over a certain amount. If you income exceeds the amount indicated in the guidelines, you must pass the "Means Test". One of the principle purposes of the Means Test is to assure that court that the protection under the bankruptcy codes is being used by those people that are truly in need of it.

Your bankruptcy case can also be dismissed if you have filed previously filed bankruptcy within a certain period, or if the court believes that you are attempting to deceive your creditors.

Chapter 7 Means Test

If your income falls below the state median income for the area that you reside, there is no reason to apply the Means Testing. However, if your income is above the stated level for your area and household size the Means Test provides a method for calculating and deducting allowable expenses. These expenses are based on the standards put forth by the IRS. For more detailed information about the Chapter 7 Bankruptcy Means Test you can reference the U.S. Bankruptcy Trustee website.

Arrange a No Obligation Consultation

To take the first step toward eliminating your debt, preventing foreclosure, ending harassment from creditors and collectors, call the law firm today at (631) 564-2754 and speak with one of our bankruptcy professionals. You can also use our online form to arrange for your Chapter 7 Bankruptcy consultation and a member or our staff will contact you at your convenience.

Chapter 13 Bankruptcy Overview