How does chapter 7 works and who is eligible for it? 19 Answers as of October 16, 2012

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Law Office of Norman Moore
Law Office of Norman Moore | Norman P Moore Jr
In a chapter 7, the trustee looks at your stuff. He is looking for stuff that is both valuable and unprotected. If he finds anything, he takes it and sells it. He uses that money to pay down your debt. Once that money is gone, any debt that qualifies disappears. If you haven't filed a 7 in the last 8 years and you don't make a ton of money, you qualify. Feel free to contact me to discuss your particulars at your convenience.
Answer Applies to: Wisconsin
Replied: 10/16/2012
Law Office of Stuart M. Nachbar, P.C.
Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
In NJ, it would need to depend on your income based on your county's median income. Check the us trustee's website.
Answer Applies to: New Jersey
Replied: 10/16/2012
Ashman Law Office
Ashman Law Office | Glen Edward Ashman
How a 7 will work and whether you are eligible depends on your finances, so you need to sit down with counsel and review your numbers.
Answer Applies to: Georgia
Replied: 10/16/2012
Eric J. Benzer, Attorney at Law
Eric J. Benzer, Attorney at Law | Eric Benzer
Please call an attorney.
Answer Applies to: Maryland
Replied: 10/15/2012
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
I strongly recommend talking to an attorney about the process and ramifications of filing bankruptcy. There are primarily two types of filings, Chapter 7 and Chapter 13. Depending upon your situation, one may be preferred over the other, or you may be forced into one as oppose to the other. A Chapter 7 is liquidation where any assets not protected under Nevada law are liquidated to pay your debts. A Chapter 13 is a repayment plan where a trustee collects a monthly payment from you for between 3-5 years and disburses those payments to those creditors who filed a claim in your case.
Answer Applies to: Nevada
Replied: 10/15/2012
    Bruning & Associates, PC
    Bruning & Associates, PC | Kevin Bruning
    In a chapter 7, you file a petition with the bankruptcy court that contains various schedules and questions as detailed on the official bankruptcy forms. You must list all of your debts, assets, income, and expenses, among other extensive information. You will then be required to attend a creditor meeting (also known as a 341 meeting or a trustee's meeting) where you will be asked questions about the contents of your petition. If successful, you will receive a discharge about 60 days later. You must take two credit counseling courses, one before filing and one after filing, and you should be aware that certain debts cannot be discharged. Also, if you have any debts secured by collateral (e.g. a car with a loan on it), then you may need to negotiate a reaffirmation agreement with the car loan company so you can keep making payments and keep the car. There is much more involved in the process of filing for bankruptcy and you should at least go to an initial consultation with an attorney before filing to determine if you would benefit from a lawyer handling your case.
    Answer Applies to: Illinois
    Replied: 10/15/2012
    Law Offices of J. L. Haddock, PLLC
    Law Offices of J. L. Haddock, PLLC | Jared L. Haddock
    The answers to your questions are a little more extensive than what can be easily answered in this format. If you would like to determine your eligibility and learn about the process, I would recommend consulting with a bankruptcy attorney. I (and most other attorneys) offer free initial consultations in which we can address the specifics of your case in far greater depth than would be feasible here.
    Answer Applies to: Michigan
    Replied: 10/15/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
    Answer Applies to: Arizona
    Replied: 10/15/2012
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    You need to determine what chapter is best for you and to see if you qualify you need to determine you income and expenses. This is normally done when you discuss with an attorney.
    Answer Applies to: Florida
    Replied: 10/15/2012
    Danville Law Group | Scott Jordan
    Individuals or couple whose average monthly income is at or below the family median income for that state, as established by the federal government, is/are eligible for Chapter 7 bankruptcy.
    Answer Applies to: California
    Replied: 10/15/2012
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    To be eligible for Chapter 7 bankruptcy relief, you must qualify based on your income ("means test") and not have filed in the last 8 years. Assuming you have not filed for Chapter 7 relief in the last 8 years, you need to pass the means test. The means test takes your income over the last 6 months and the size of your family to determine whether you fall in the top half of earners in the State or the bottom half of earners. If you fall in the bottom half, you qualify for Chapter 7 relief. If you fall in the top half of the earners in California, you usually must file for Chapter 13 relief instead. There are exceptions, though, such as when the majority of your debt is "non-consumer" for example, debt from a business enterprise, etc. Contrary to what many people think a Chapter 13 case does not necessarily require you to pay back everything you owe in full. The basic concept is that you pay every month what you have left over after paying for taxes and your reasonable budget expenses and in exchange you can discharge up to approximately $360,000 in unsecured debt (currently). If you have too many unexempt assets, however, you may have to pay more than only what you have leftover at the end of the month. In sum, however, either Chapter 7 or 13 relief is usually advantageous and can give you a fresh start either quickly under a Chapter 7 or under your own terms in a 13.
    Answer Applies to: California
    Replied: 10/15/2012
    William Bidwell, Attorney at Law | Bill Bidwell
    Chapter 7 discharges all of one's debts. There are various exemptions that allow one to have essentials. You can file yourself, but I recommend contacting an attorney to evaluate your options. Your overall financial position determines whether Chapter 7 or 13 is best for you. Most attorneys offer no charge for initial consultation.
    Answer Applies to: Michigan
    Replied: 10/15/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    You file a petition and the debt you owe gets discharged. You can file a chapter 7 in Florida if you make under a certain amount and have a family of a certain number of people. It is not something you can just go and do quickly.
    Answer Applies to: Florida
    Replied: 10/15/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    A chapter 7 case will discharge all of your unsecured debts such as credit cards and personal loans as well as repossessions. To qualify, you need to meet certain income guidelines and must be able to protect your assets. Because you don't give any more facts, it's impossible to assess your situation. You should consult with an attorney to determine your eligibility.
    Answer Applies to: California
    Replied: 10/15/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you are below the state median income and you do not have unexempt assets, then you could qualify for a chapter 7.
    Answer Applies to: New York
    Replied: 10/15/2012
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Wow - that is a pretty broad question. A Chapter 7 is a proceeding under federal law that allows most kinds of debt to be eliminated if, during the prior 6 months, your average income indicates that you cannot reasonably afford to pay even a small portion of your debt off.
    Answer Applies to: Nevada
    Replied: 10/15/2012
    The Smalley Law Firm, LLC | Cary Smalley
    Most people are eligible for Chapter 7. The details and eligibility depend upon a number of factors. I suggest you talk to a bankruptcy attorney to discuss the specific details of your situation.
    Answer Applies to: Kansas
    Replied: 10/15/2012
    LAW OFFICE OF MARGARET L. EVANS, PC
    LAW OFFICE OF MARGARET L. EVANS, PC | Margaret L. Evans
    Question: How does chapter 7 works and who is eligible for it? *- you must first determine if you are eligible to file a Chapter 7 through the MEANS TEST. If you are, then you get a complete discharge and don't have to pay any creditors back (provided all of your assets are exempt). Its generally a quicker process and can get you the relief you need more quickly. There are many more caveats I could provide, but not without knowing all of the facts and circumstances of your particular case. *
    Answer Applies to: South Carolina
    Replied: 10/15/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It wipes out debt.... But not student loans, some taxes or secured debt (if you want to keep the property you have keep paying for it). There is an income requirement that varies b state. See a lawyer, most don't bite.
    Answer Applies to: California
    Replied: 10/15/2012
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