An Overview Chapter 7 Bankruptcy

The United States Constitution authorizes Congress to set Bankruptcy Laws, those laws are referred as the Bankruptcy Code. Chapter 7 refers to that chapter which allows you to cancel most of your debts. Chapter 7 is often referred to as a “Liquidation” case because in Chapter 7 the court may take some of your non-exempt property to pay a portion of your debt.

Under the law you are allowed to keep most of your reasonably necessary property, such as your house, your home furnishings and appliances, your vehicles and your retirement account. When you come to our office for a consultation we will advise you whether or not you may lose some of your property. In most instances you get to keep all of your property.

In order to qualify for chapter 7 relief you must meet certain requirements. The factors that determine whether you qualify for chapter 7 relief are your income, your living expenses, your family size and the extent and nature of your debt. When you come in to our office for a consultation we will evaluation your situation to determine whether you qualify for chapter 7 relief.

The goal of a chapter 7 bankruptcy is to get rid of, or discharge, most of your debts. In chapter 7 you wish to keep certain debt such as car or house payments so that you can keep your car or house. On the other hand you may wish to surrender the property, such as a car, so that you will not have to make any further payments on the car. Certain types of debt are not dischargeable in bankruptcy, these debts include taxes, student loans, fines, child and spousal support obligations.

Should you file for chapter 7? Do you qualify for chapter 7 relief? The only way to answer that question is to come to our office so that we can evaluation your circumstances and advise you.