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Chapter 7 Bankruptcy = Debt Discharge

If you're inundated by credit card debt, uninsured medical expenses, payday loans or other unsecured debt and are having a tough time making ends meet, Chapter 7 bankruptcy might provide you the relief you need.

Chapter 7 bankruptcy wipes out debt through a debt discharge, which means you'll never have to pay those unsecured debts!

Learn more and connect with a local bankruptcy lawyer today by filling out our free 2-minute bankruptcy form. Make the first move and contact us today.

Is Chapter 7 Bankruptcy Right for Me?

If you're wondering whether filing Chapter 7 is a good idea for you, ask yourself the following questions:

• Am I having a hard time making ends meet?
• Have I recently lost income or do I make minimal income?
• Do I have trouble even making minimum payments on my credit card?
• Do I have a lot of medical bills that I can't pay?
• Do I have few assets and rent (or own a home with little equity)?

If you answered yes to any of these questions, filing Chapter 7 bankruptcy may be a good way for you to get out of debt and get back to living.

If Chapter 7 doesn't sound right, Chapter 13 may be a better debt-relief option. Talk to a bankruptcy attorney to find out which, if any, bankruptcy may be right for you.

Can I File Chapter 7 Bankruptcy?

In 2005, the bankruptcy law changed and there are now stipulations as to who may file for Chapter 7 bankruptcy.

Each potential filer must pass the Chapter 7 means test before being allowed to file Chapter 7 and get their debts discharged. But don't worry—most people who filed bankruptcy prior to the law change would still qualify under the new law.

A bankruptcy lawyer may be a good person who can give you more information about the means test.

How Does Chapter 7 Bankruptcy Work?

In a Chapter 7 bankruptcy proceeding, any non-exempt assets may be sold off by the bankruptcy trustee in order to pay creditors.

But don't panic—most Chapter 7 many petitioners find that they don't have any non-exempt property because the necessities of life like clothing, tools used to earn an income, furniture and even a certain amount of home and car equity are usually exempt.

Note: The exact exemptions vary from state to state, so a local bankruptcy lawyer is a good person to talk to regarding exemptions.

Once non-exempt assets are liquidated and the procedural requirements are fulfilled, the filer receives the debt discharge. This is where the "fresh start" comes. Any remaining dischargeable unsecured debts are eliminated.

What Can't Be Discharged Through Chapter 7 Bankruptcy?

Not all debts are dischargeable through a Chapter 7 bankruptcy.

For example, child support debts are generally not dischargeable. Government student loan debts are also not dischargeable except under certain narrow circumstances and some tax debts are non-dischargeable too.

A bankruptcy attorney could walk through your debts and determine which may be considered dischargeable.

Looking for additional bankruptcy information? Check out Total Bankruptcy—your source for relevant and valuable bankruptcy information.