Chapter 7 bankruptcy
Chapter 7: wipe out what qualifies
Chapter 7 is the quickest kind of bankruptcy. You list what you own and what you owe, a trustee reviews it, and most unsecured debts are erased: credit cards, medical bills, personal loans, old utility bills. For most people the case runs about four months from filing to discharge.
It isn't for everyone. A means test compares your income with the median for a household your size, and property the law doesn't protect can be sold to pay creditors. Most people keep everything they own, because the law shields a set amount of home equity, a car, tools, clothing and retirement accounts. We check each item before you decide.
It usually fits when
Most of your debt is credit cards, medical bills or personal loans
Your income is low, or you have lost income
You would rather be done in months than pay for years
How a Chapter 7 case runs
From first call to the last order, in order. Most people attend one short hearing.
- 01
Step 1: Review
We go through your debts, income and property on the free call, and tell you if Chapter 7 fits.
- 02
Step 2: Prepare
You bring a short list of papers. We draft the petition and schedules, and you read every line before you sign.
- 03
Step 3: File
We file with the bankruptcy court and send notice to your creditors. The automatic stay generally stops collection from that day.
- 04
Step 4: Meeting of creditors
About a month later you answer a trustee's questions, usually in minutes. We prepare you and sit beside you.
- 05
Step 5: Debts erased
A couple of months after that, the court's order arrives and the debts it covers are gone for good.
Chapter 7 questions
Before you file Chapter 7
Can I file Chapter 7 if I own my home?
Often, yes. Whether you keep the home depends on how much equity you have and how much of it the law protects. If you are behind on the mortgage, Chapter 13 may fit better, and we will say so.
What does Chapter 7 not erase?
Child support and alimony, most student loans, recent taxes and court fines usually survive. A mortgage or car loan stays tied to the property unless you give it up.
What if I do not pass the means test?
Chapter 13 is usually the next step. We run the numbers on the free call, before you pay for anything.
Can I file more than once?
Yes, but there are waiting periods between filings. If you have filed before, tell us the dates on the first call.
Find out if Chapter 7 fits
Tell us what you owe and what you earn. A lawyer answers by the next business day.
The first call is free and does not start a case.