Chapter 7

Bankruptcy means that someone's debts are discharged (paid) through selling off their assets and disposable income. For Chapter 7 Bankruptcy, anyone who has to file must meet certain maximum income requirements through passing a means test. People who do not meet these requirements would be forced to use Chapter 13 Bankruptcy, which structures discharge differently. 

In order to pass the means test, you would have to make less than the median household income in your state. Chapter 7 Bankruptcy does liquidate your assets to use for paying off your debts, however there are often exemptions based on type of property and the laws in your state. While Chapter 7 Bankruptcy does allow many debts to be forgiven or settled for pennies on the dollar, there are some, student loans, for instance, where discharge is not allowed. 

In order to find out if Chapter 7 Bankruptcy is right for you, call and schedule a consultation with us to discuss all your options.