Experienced Guidance Through Chapter 7 Bankruptcy
Chapter 7 bankruptcy, sometimes called “straight bankruptcy” or “liquidation bankruptcy,” is the most common type of bankruptcy filing in the United States. Chapter 7 allows debtors to keep certain types of property while selling off other property to pay back the filer’s creditors.
Is Chapter 7 Bankruptcy Right For My Family And Me?
Chapter 7 bankruptcy involves the liquidation (or sale) of your property. The proceeds from the sale are then distributed to your creditors, and your debts are discharged.
There are several chapters of the bankruptcy code that outline different types of bankruptcy for different situations. Typically, filers do not get to choose which chapter they file under; they must meet specific criteria to file a certain type of bankruptcy.
To move forward under Chapter 7, you must pass a “means test,” which determines whether your income is low enough for you to file Chapter 7. This test identifies your total income and disposable income, then compares that against your debts. If you earn more than the median income and have enough disposable income to repay some of your debts, you may be required to file for Chapter 13 instead of Chapter 7.
Can I Keep My House Or Car?
In most cases, yes. There are exemptions for certain property, like a home or vehicle, that allow debtors to retain these important assets. If you have questions about what property you may be allowed to keep in Chapter 7 bankruptcy, it is wise to discuss your concerns with an attorney.
Learn More In A Free Consultation
Dealing with overwhelming debt can be extremely stressful and isolating. Even though struggling with bills and debts is very common, many people feel alone in the fight. You do not have to face difficult debt alone. To learn more about your options for bankruptcy and how a lawyer can help, please call my office in Tilton at 603-729-3368 or contact me via email.