Chapter 7 Bankruptcy

Chapter 7 bankruptcy is often called liquidation bankruptcy because you wipe out all (or most) of your debts and in return the bankruptcy trustee liquidates your property to pay your creditors. However, because the trustee cannot take exempt property (property that state or federal bankruptcy law decrees as protected), most Chapter 7 bankruptcy filers keep all or most of their property.

In 2005 Congress changed bankruptcy law so that not everyone qualifies for Chapter 7 bankruptcy. If you earn more than the median income in your state, you’ll have to take something called the “means test” to see if you are eligible for Chapter 7.

Even if you do qualify, Chapter 7 isn’t the best option for everyone. If you have lots of equity in your home, the trustee may sell it. And if you are behind in mortgage payments or your car loan note, Chapter 7 bankruptcy is not usually the best way to save your home or car.

Learn About Chapter 7 Bankruptcy

Chapter 7 No-Asset Bankruptcy

The majority of people who file for Chapter 7 bankruptcy have what is often referred to as no-asset Chapter 7 bankruptcy cases. In a no-asset Chapter 7 case, you don't have any property that the bankruptcy trustee can take and sell in order to repay your creditors. Yours can be a no-asset Chapter 7 even
Keeping a Credit Card in Chapter 7 Bankruptcy

If you file for Chapter 7 bankruptcy, can you keep a credit card so you can use it afterward? While it generally is not a good idea to keep a credit card in Chapter 7 bankruptcy, in most cases you can do it.
How Is Income From Child Support Treated in Chapter 7 Bankruptcy?

If you file for Chapter 7 bankruptcy and receive child support, you may be concerned about losing ongoing child support payments, payments you received before you filed for Chapter 7 bankruptcy, or child support arrears.
Lifting the Automatic Stay in Chapter 7 Cases

One of the most attractive consequences of filing a bankruptcy petition is the automatic stay. In a previous article, I discussed the importance of the automatic stay in bankruptcy. As I wrote...

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