Chapter 7 Bankruptcy – Discharge of General Unsecured Debt
Chapter 7 bankruptcy is the type of bankruptcy most people are familiar with.
What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is a form of bankruptcy in which any assets that are not protected, or exempt are liquidation for the benefit of the creditors. An asset that is liquidated is usually sold by the Chapter 7 Trustee at auction and the funds are distributed according to the priority classification of a debt.
For information on exempt property click HERE.
For information on non-exempt property click HERE.
Do you qualify for chapter 7?
The Means Test determines whether you qualify for a Chapter 7 Bankruptcy. The means test was designed to prevent debtors with large disposable monthly incomes from filing Chapter 7, and instead push them towards a Chapter 13 Bankruptcy where they could pay back some, if not all of their debts. The Means Test takes a snap shot of your income for the last 6 months, then compares it to the general population within the same general location – usually determined by zip code.
For information on the Means Test and if you qualify for Chapter 7 Bankruptcy, click HERE.
Will My Debts Go Away If I File Bankruptcy?
There are three basic types of debts:
- Debts that go away in bankruptcy. These are debts that are called dischargeable and you will never have to worry about these again. The most common types of dischargeable debts are credit cards, medical bills, utility bills, payday loans, repossession deficiencies, etc.
- Debts that never go away in bankruptcy. These are debts that are called non-dischargeable. These are debts that will follow you to your grave
- Debts that are attached to some type of property, or collateral. These are called secured debts. In a Chapter 7 Bankruptcy you get a choice: You can keep the property and pay for it, or you can walk away and not owe a penny. The most common types of secured debts are car loans, mortgages and title loans.
For a brief overview on the three basic types of debts, click HERE.
Chapter 7 vs Chapter 13 Bankruptcy?
For an overview on which type of bankruptcy may be right for you, click HERE. There is no one size fits all answer to this question, so it is best to speak with an attorney about your situation to determine whether Chapter 7 or Chapter 13 Bankruptcy may be a better fit.
How Much Does A Chapter 7 Bankruptcy Cost?
If you are considering filing chapter 7 bankruptcy, an important question is how much a chapter 7 bankruptcy costs. Here I will outline the basic fee structure for Chapter 7 Bankruptcy. To see how much a bankruptcy may cost you, click HERE.
How To Pay For A Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy fees must be paid prior to filing. The attorney fees vary in price depending on the complexity of the case. To see how to pay for a Chapter 7 Bankruptcy, click HERE.
To speak to a skilled and experienced Kansas Bankruptcy Lawyer about Chapter 7 Bankruptcy, please give us a call at email us now.for a FREE Consultation over the phone or in person or you can