Chapter 7 bankruptcy is your right as a U.S. citizen!
Chapter 7 refers to a portion of the U.S. bankruptcy code that deals with liquidation. If you’re overwhelmed by unsecured debts such as credit cards, medical bills, personal loans or wage garnishments, you’re probably a good candidate for Chapter 7. Also known as straight or liquidation bankruptcy, Chapter 7 is the most common form of bankruptcy filed in the United States. It’s also the fastest way to get out of unsecured debts. In some cases, debts can be discharged in just a few months!
Here are some of the most common debts Chapter 7 can eliminate:
- Credit card debt
- Utility bills
- Medical bills
- Many types of personal loans
Filing for Chapter 7 bankruptcy
To file for Chapter 7, you submit a petition with the bankruptcy court nearest you. This filing automatically stops your creditors from taking any further action against you – in fact, once your case has been filed, your creditors are legally prohibited from contacting you at all. For most filers – who’ve spent months harassed by unending creditor calls and letters – this provides tremendous relief. What’s more, DebtStoppers makes this solution affordable. Payment plans for your court filing fees , usually around $335, are available and as long as you’ve got a job and a bank account.
A case trustee then meets with you to ask questions about your financial situation and property. The trustee determines which of your assets are “exempt” and which can be liquidated to pay your unsecured creditors. Although the law allows the trustee to sell non-exempt assets to reimburse your creditors, it is our experience that clients rarely lose any possessions in a Chapter 7 bankruptcy.
Chapter 7 is not for everyone. To qualify, you must pass a means test, which looks at your median income and your disposable income. If you earn more than your state’s median income over a six-month period, or have disposable income over the next five years greater than $10,000, you will not qualify for Chapter 7 bankruptcy. In addition, filing for Chapter 7 comes with risks that you could lose valuable assets (even your house) that you may have thought were exempt. Let a My Fresh Start attorney guide you through the process so that you can avoid unpleasant surprises