Chapter 7 “Discharge”

If you are looking for a fresh start financially, you may need to consider filing a chapter 7 bankruptcy.  This form of bankruptcy is the most common and may be referred to as a straight or liquidation bankruptcy. 

Chapter 7 will help you:

• Eliminate your debts including credit cards, medical bills, payday loans and more in 4 – 6 months.
• Immediately Stop Harassing Collection calls, Foreclosure, Repossessions, and Wage Attachments.
• Keep all of your exempt personal assets including a homestead equity exemption.
• Start rebuilding your credit today and see a significant improvement in your credit score a few months after filing. In many cases filing bankruptcy eliminates debt which improves your credit score.

Eliminate Your Debts
Once a Chapter 7 bankruptcy is completed, all allowable debts are eliminated for the debtor.  In California, you may only file a Chapter 7 bankruptcy if your household income falls below certain levels.  This limit is equal to the average household income for the state and may be adjusted for the size of your family. 

If your income exceeds this value for your family size, you may still be able to qualify for a Chapter 7 bankruptcy filing, but you will have to satisfy a secondary qualification, known as a means test.

The Means test
The means test is designed to eliminate Chapter 7 bankruptcy as an option for those who have the ability to repay their debts through a Chapter 13 repayment plan. 

For the means test, a list of the debtor’s expenses is compiled.  The IRS has assigned a value for each of these expenses.  These allowable expenses are then compared to your gross household income.  If the amount left over is less than $100 each month, you may qualify to file a Chapter 7 bankruptcy even though your income exceeds the average household income for the state.

Foreclosure with Chapter 7
Filing for Chapter 7 bankruptcy will at least stall the sale and you can live in your home for free during at least some of the months while your bankruptcy is pending--and perhaps several more after your case is closed. You can save up money during the process and make arrangements to get move out expenses after the foreclosure is completed. You can then use that money to help secure new shelter. Chapter 7 bankruptcy gets rid of your personal liability under the promissory note, but it doesn't remove the lien.

Can you really afford not to file?
Some people may feel there’s a stigma attached to bankruptcy and hesitate to get the relief offered by law…What’s really unfortunate is if you allow yourself and family to struggle to make ends meet when there’s a real constructive solution staring you right in the face. We help good conscientious people Start Fresh everyday.

Find out if Chapter 7 will get rid of your debts. Start your Free Evaluation Today, click here to Request your Free Evaluation.