Chapter 7 Bankruptcy

Chapter 7 bankruptcy is sometimes known as a “liquidation bankruptcy” or a “straight bankruptcy.” The main objective of filing a Chapter 7 case is to receive a discharge of your debts while your creditors receive payments as a result of a liquidation of your assets. When the court enters an order discharging your debts, your creditors are forever barred from collecting on those debts, thereby giving you permanent relief and facilitating a financial fresh start.

Consumers who file for Chapter 7 bankruptcy must qualify based on their income, and, so long as they meet the income qualification, they are eligible to receive a discharge of their debts. In exchange for receiving a discharge, the individual agrees to be subjected to a liquidation of their assets. If the individual owns assets, those assets can be sold and the proceeds used to pay their creditors.

However, in many cases federal and state law can shield those assets from being liquidated. Kapnek Law Firm will help you maximize your exemptions, protect your assets, and make the bankruptcy process as smooth as possible. We will guide you through each step, ensuring that you are well-informed about the process and helping prepare you for a brighter financial future.

Chapter 7 bankruptcies are frequently completed in 4-6 months, giving you the chance to begin rebuilding your financial life almost immediately.

The Chapter 7 Means Test: Assessing Your Eligibility to File

The Chapter 7 Means Test is a crucial component of the bankruptcy process, specifically designed to determine an individual's eligibility for Chapter 7 bankruptcy relief. This test evaluates one's income, expenses, and financial situation to assess their ability to repay debts.

Through the means test, individuals with below the median income in their state can generally qualify for Chapter 7 bankruptcy and, assuming no other issues arise in their case, receive a discharge of eligible debts. However, if their income exceeds the median, further calculations are conducted to determine whether they have enough disposable income to repay a portion of their debts.

Understanding the intricacies of the Chapter 7 Means Test is vital for anyone considering filing for bankruptcy. Given its complexity and potential impact on your financial future, it is strongly recommended to seek the guidance of an experienced bankruptcy attorney. With their expertise, an attorney can help you navigate the test's guidelines, exemptions, and intricacies more effectively, ensuring that you make well-informed decisions throughout the bankruptcy process. By having a knowledgeable professional by your side, you can maximize your chances of a successful bankruptcy filing and secure a more favorable outcome for your financial situation.

Call 404-474-3445 or contact us today to find out whether Chapter 7 bankruptcy is right for you.