Chapter 7 Bankruptcy Attorney By Me
Chapter 7 bankruptcy is one of the two types of bankruptcy available to individuals struggling with insurmountable personal debt. Personal debt is defined as any debt accrued for non-business reasons, such as credit card debt and medical bill debt. The other type is Chapter 13.
In many ways, Chapter 7 bankruptcy is a more extreme process than Chapter 13. The most notable aspect of Chapter 7 bankruptcy is that it involves the liquidation of the filer’s nonexempt assets. This is done to raise money to repay his or her creditors. Nonexempt assets are any assets that the filer does not need to perform his or her job or live day to day, such as recreational vehicles, jewelry, and electronics like game consoles.
Qualifying for Chapter 7 Bankruptcy
Not all indebted individuals qualify for Chapter 7 bankruptcy. In order to qualify, an individual must pass the Means Test. Individuals who earn less than the median monthly income for their household size in their state automatically pass the Means Test. Those who earn more than this amount can still pass if they demonstrate that they do not have a sufficient amount of disposable income to make monthly debt payments. This is calculated by subtracting the individual’s required payments, such as his or her mortgage and car payments, from his or her monthly income. Individuals who do not qualify for Chapter 7 bankruptcy can file for Chapter 13 bankruptcy.
What Can I Expect from Chapter 7 Bankruptcy?
Before you can file for bankruptcy, you must complete a credit counseling session. You must also pay the filing fee, which is $335 for Chapter 7 cases.
Once you file for Chapter 7 bankruptcy, you will be assigned a bankruptcy trustee. This is the individual who will oversee your bankruptcy process. You will need to supply him or her with certain documents, including your pay stubs and tax returns from the past few years. Once you file your petition with the court, the automatic stay goes into effect. This is a court order that prevents your creditors from attempting to collect payments from you.
Your bankruptcy trustee must determine if you have assets that are eligible for liquidation and if so, it is his or her job to liquidate them and ensure that the profit is used to pay your creditors. Your lawyer can help you you contest your trustee’s determinations in cases where you feel an asset should be exempt from liquidation.
After your debt is discharged, you will have a damaged credit score and the bankruptcy will appear on your credit report for 10 years after it is completed.
Work with an Experienced Merrillville Bankruptcy Attorney
If you are considering filing for bankruptcy, first speak with an experienced bankruptcy attorney about your options and your rights as a filer. You might find that you qualify for another chapter than you initially thought you might qualify to file or you might find that there are more effective options than bankruptcy available to you. To learn more about filing for bankruptcy, speak with an experienced bankruptcy attorney. Contact The Law Office of Kevin M. Schmidt, P.C. today to set up your free consultation in our office.