Chapter 7 Consumer Bankruptcy

Nobody should live with the stress that comes with serious financial challenges. If you have significant debts that you can’t repay, you should contact an attorney to consider your legal options. Although the phrase liquidation is commonly used alongside a Chapter 7 bankruptcy, the law provides that the vast majority of debtors may protect their assets while still eliminating their debts.

Understanding Chapter 7 Consumer Bankruptcy

Typically, Chapter 7 works best for debtors with significant unsecured debts, such as credit cards or medical bills. These are debts that do not have collateral attached to them, like a mortgage or a car loan would. In most cases, a Chapter 7 bankruptcy eliminates all your unsecured debts while permitting debtors to continue to pay their secured debts (like car loans and mortgages). However, debts like child support, taxes, alimony, fraudulent debts, and student loans are not discharged in this bankruptcy chapter.

You are eligible to file Chapter 7 if your total income is below the median income for your household. You are also eligible to file a Chapter 7 if your expenses exceed your income under the bankruptcy means test.

A Step-by-Step Guide on Filing Chapter 7 Bankruptcy

The process of bringing a consumer bankruptcy case is straightforward. Although most debtors start overwhelmed, with our assistance we can guide you successfully to a discharge at the end of your case.

With your attorney’s help, you will gather bankruptcy documents like credit reports, bank statements, paycheck stubs, and federal income tax returns. You will also need to complete a credit counseling course before and after your filing your case.

Most debtors do not need to make an appearance in court, but all debtors must attend a required meeting of creditors – or 341 meeting – where the trustee in charge of your case will ask you questions to confirm you have disclosed all of your assets and there is no way to pay your creditors.

Filing for a Chapter 7 case could be overwhelming, but it does not have to be. Consulting with an attorney before deciding to file Chapter 7 bankruptcy is advisable. The qualified legal team DeMarb Brophy LLC can guide you throughout the process. After analyzing your debt types and amounts, we can file the necessary paperwork on your behalf. Call us today at 608-310-5500 or fill out our online contact form to schedule your initial consultation.