Chapter 7 Bankruptcy
Chapter 7 Bankruptcy: What To Know
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also referred to as straight or liquidation bankruptcy, is the most common type of bankruptcy filed by consumers. The primary reason that individuals and families choose to file chapter 7 under the bankruptcy code is to receive a “fresh start” through which some or all of their debts can be cleared away or discharged while they are still able to keep their exempt property.
Many times people are overwhelmed with collection calls or aggressive collection efforts, which include wage garnishment, repossession of vehicles or home foreclosures. The filing of a chapter 7 bankruptcy petition comes with an automatic stay which immediately stops all of these creditor collection efforts. Our experienced bankruptcy attorneys offer a free consultation to help you determine if chapter 7 bankruptcy is the right solution for you.
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Do You Qualify for Chapter 7 Bankruptcy?
Almost any individual, sole proprietorship, partnership, corporation and family farmer in the United States is eligible to file for Chapter 7 bankruptcy under the bankruptcy code.
TO QUALIFY FOR AND BE SUCCESSFUL IN CHAPTER 7 BANKRUPTCY :
YOUR MONTHLY INCOME MUST BE LESS THAN THE MEDIAN INCOME FOR SAME-SIZED HOUSEHOLD OR YOU MUST PASS THE MEANS TEST OF WHETHER YOU HAVE SUFFICENT INCOME TO PAY YOUR CREDITORS
YOU HAVEN’T FILED A CHAPTER 7 BANKRUPTCY DURING THE PAST EIGHT YEARS
YOU MUST COMPLETE A CREDIT COUNSELING COURSE WITHIN 180 DAYS BEFORE FILING
IF YOU TRIED TO FILE A CHAPTER 7 OR 13 BANKRUPTCY AND YOUR CASE WAS DISMISSED FOR ABUSE, YOU HAVE TO WAIT AT LEAST 181 DAYS BEFORE TRYING AGAIN
Generally, there are no minimum financial or solvency requirements to file a bankruptcy case by a debtor. For individuals and families, there are requirements that need to meet for them to qualify for chapter 7.