Chapter 7 Bankruptcy
Most people filing for Chapter 7 will find that they can eliminate most of their debts and retain all of their assets.
What is Chapter 7 bankruptcy?
Filing for Chapter 7 has the benefit of eliminating most of your unsecured debt such as credit cards, medical bills, garnishments, judgments, unsecured loans, repossession balances and foreclosure deficiencies. These are called dischargeable debts. Certain debts — such as some tax debts, some student loan debts, child support and alimony — cannot be eliminated in a Chapter 7. When you come in for the initial consultation, we can tell you about the type of debt you can eliminate by filing a Chapter 7.
If you have a secured debt, like a home mortgage or a vehicle loan, you will need to continue making payments in order to keep your property.
Who is eligible and what is required to file for Chapter 7 bankruptcy?
To qualify for Chapter 7 bankruptcy, you must meet the income requirement. If your annual household income is at or below the median income in Minnesota for a household of your size, you are automatically eligible for a Chapter 7. Even if your household income exceeds the median income, you are still allowed to file for Chapter 7 if you pass the means test. If your income is too high to file for Chapter 7 relief, we can help you seek relief under Chapter 13 bankruptcy.
We will let you know the information we need from you in order to file a Chapter 7 bankruptcy.
Call our office for your free initial consultation and we can tell you whether filing a Chapter 7 bankruptcy case makes sense for your particular circumstances.
