Liquidation bankruptcy under Chapter 7 of the Bankruptcy Code is a way to clear all kinds of unsecured debts. If you are unable to pay off your bills and monthly living expenses, then you can file for Chapter 7 to reset all your finances that you can’t handle on your own.
Sometimes debts pile up. It can be medical bills, credit cards or personal judgments. Chapter 7 can help deal with all of these. At Lakeside Legal we have the experience of dealing with clients and businesses struggling with critical financial issues. We can help you out in discharging your debts.
Bankruptcy under Chapter 7 of the Code
Upon the filing of a bankruptcy, the Bankruptcy Court places an automatic stay on the collection of all your debt. This will restrict the creditors in collecting payments, taking possession of your property, or other collection methods. The Court will appoint a trustee to supervise your assets until the entire bankruptcy procedure is completed.
The trustee will be reviewing all your finances and assets and determine whether assets need to be sold or not. The trustee can sell certain assets to repay your debts to the creditors. He will also arrange a meeting between creditors and the debotor called a “meeting of creditors.” This meeting will be commenced in a courthouse where the debtor will have to answer various questions about filing for bankruptcy.
Usually a bankruptcy will take approximately four to six months for this entire procedure to complete. It is important to note that there are certain debts that cannot be discharged through bankruptcy such as student loans, child support, court fees, and tax debts. So, if you want to file for a Chapter 7 bankruptcy, then make sure to take the legal advice of our bankruptcy attorneys.
Criteria to Qualify for Chapter 7 Bankruptcy
In order to file for a Chapter 7 bankruptcy there are certain requirements that you need to meet:
- Complete an individual or group credit counseling course from an accredited counseling agency 180 days prior to filing for Chapter 7.
- You must pass a ‘means test’ to determine whether or not you can pay partial debts to unsecured debts. If you don’t pass the test, then you can opt for Chapter 13.
- Your average monthly income for the last six months should be less than the median income.
- You should not have filed for Chapter 7 in the last eight years.
- You should not have filed for Chapter 13 in the last six years.
Dischargeable Debts through Chapter 7
Under Chapter 7, you can discharge all your unsecured debts including medical bills, unsecured personal loans and credit card debt. The Court will discharge these debts after at least four to six months when the entire procedure is completed.
Contact Our Chapter 7 Bankruptcy Attorneys
We have drafted this guide to help you get the fundamental knowledge about Chapter 7, but you should consult a qualified attorney to receive specific advice for your situation. So, make sure to get in contact with our bankruptcy lawyers so that they can explain the entire procedure in simple words, and help you identify the best option for your situation. Initial thirty (30) minute consultations are free.
To discuss your debt collection case, please reach out to us at (920)-921-2300, through our live chat feature, or with our contact us form below.[/column]