Chapter 7 Bankruptcy

A chapter 7 bankruptcy is what most people think of when they hear the word “bankruptcy.”

It involves the liquidation of a debtor’s non-exempt assets. All debts remaining after a debtor’s non-exempt assets are sold are then discharged. Sometimes there is a worry that filing for a chapter 7 bankruptcy will mean losing everything you own. This is not true. In a chapter 7 bankruptcy, debtors will only lose their non-exempt assets. This means that debtors may be able to keep their home, car, and other, exempt personal property. We will explain what exemptions are available to you and how to properly claim them.

Under the new bankruptcy law effective in 2005, chapter 7 debtors are now subject to a two-part “means test” to determine whether they qualify.

Chapter 7 bankruptcies flow through the court system quickly. In just months, you might be able to discharge your debt. Chapter 7 bankruptcies generally do not discharge student loans, alimony, and certain income taxes.

Chapter 7 may be a good option if:

You don’t own a home;
You don’t own other major non-liquid assets;
You have a low to moderate income stream;
You have a variety of unsecured debt (such as medical bills and credits cards).

DISCLAIMER: Please note that the information contained in this web site has been prepared by the Law Office of Olga Zlotnik, PLLC for informational purposes only and does not constitute, and should not be considered legal advice. Transmission of the information contained in this web site and receipt by the reader is not intended to create and should not be construed as creating an attorney-client relationship with Law Office of Olga Zlotnik, PLLC. Communication by e-mail, telephone or in writing with us does not constitute the creation of an attorney-client relationship until a written fee agreement is signed. While we would certainly like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Please do not send us any information about a matter that may involve you until you receive authorization to do so from us. The bankruptcy law services described herein are with respect to bankruptcy relief under the Bankruptcy Code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.