Chapter 7 Bankruptcy

How Chapter 7 Bankruptcy Works in 2023

Chapter 7 is a quick way to get out of debt for those who qualify for a discharge. Learn whether you can erase your bills and keep your property by filing for Chapter 7 bankruptcy.

The Chapter 7 Bankruptcy Process

A typical Chapter 7 bankruptcy case is relatively straightforward. You will spend most of your time completing the bankruptcy petition, schedules, and other forms, which will require you to list your debts, assets, financial transactions, and so on. Once you've filed your paperwork, the bankruptcy trustee takes over your case.

Chapter 7 Bankruptcy Document Checklist

You’ll need to gather a lot of financial documents before filing for Chapter 7 bankruptcy. Our checklist will help you assemble the documents required to disclose your financial affairs in your Chapter 7 bankruptcy petition. We also explain which documents you’ll need to provide to the Chapter 7 trustee to prove the accuracy of the information in your bankruptcy petition.

Chapter 7 Bankruptcy for Corporations and LLCs

Filing for business bankruptcy means someone else steps in to liquidate your business’s assets and settle its debts (in this case, the bankruptcy trustee).

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

What to Do If You Fail the Chapter 7 Bankruptcy Means Test

In order to qualify for Chapter 7 bankruptcy relief, you must pass something called the means test. The means test looks at your income and expenses to determine if you can repay a certain portion of your unsecured debts to your creditors. If you can, then you don't qualify for Chapter 7 bankruptcy.

Can I File for Chapter 7 Bankruptcy If I Am Unemployed?

There is no bar to filing for bankruptcy if you are unemployed. Like all Chapter 7 bankruptcy filers, you'll have to pass the means test in order to file for Chapter 7. The lower your income, the easier it is to pass.

What to Expect at a Chapter 7 Reaffirmation Hearing

When you reaffirm a debt in Chapter 7 bankruptcy, you enter into a contract with your lender (called a reaffirmation agreement) that makes you personally liable for the obligation despite your bankruptcy discharge. Many debtors reaffirm secured debts in order to keep the asset pledged as collateral for

Typical Lawyer Fees in Chapter 7 Bankruptcy

Although attorney fees vary significantly, the average bankruptcy lawyer charges $1,200 to $2,000 for Chapter 7 bankruptcy services. The actual cost you'll pay a Chapter 7 attorney to prepare your bankruptcy will depend on three primary factors: the area you live in, the complexity of your case, and the experience level of the lawyer you hire.

Chapter 7 Bankruptcy for Partnerships

A partnership is allowed to file for Chapter 7 bankruptcy. However, depending on the type of partnership and the value of the partnership assets, filing for Chapter 7 may not be a good solution for the partners. In fact, there are several big reasons why Chapter 7 is often not helpful to partnerships.

How Long Will My Chapter 7 Bankruptcy Case Last?

When compared to many other legal matters, a Chapter 7 bankruptcy is a relatively quick process. As a general rule, you can expect your case to last four to five months. This timeline, however, varies depending on where you live and where you file your case. In addition, several events might occur during your case that will extend the length of your Chapter 7 bankruptcy.

Converting Chapter 13 to Chapter 7 Bankruptcy

When you file for Chapter 13 bankruptcy, you enter into a repayment plan to pay back some or all of your debts over three to five years. If your income drops and you can’t pay your Chapter 13 payment, it’s possible to convert to Chapter 7 bankruptcy and discharge qualifying debts quickly. But because converting from Chapter 13 to Chapter 7 isn’t always possible, you’ll want to explore other options as well.

What happens to my paid off car in a Chapter 7 Bankruptcy filing?

What happens to my paid off car in a Chapter 7 Bankruptcy filing?

Will My Debt Get Discharged If I Forget To List it in My Chapter 7 Bankruptcy?

I have a question. I forgot to list a debt on my Chapter 7 bankruptcy petition and schedules and I'm worried about what will happen. Will my Chapter 7 discharge wipe out the unlisted debt or will I still owe it? The answer will depend on whether the Chapter 7 bankruptcy trustee distributes money to your creditors and the court's discharge rules where you file your Chapter 7 bankruptcy case.

Should I List Pending Lawsuits in My Chapter 7 Bankruptcy Case?

You may be tempted to leave pending lawsuits and claims you have against someone else off your Chapter 7 bankruptcy petition and schedules. But failing to disclose lawsuits and legal claims in your bankruptcy is a big mistake. It's an act of dishonesty which could lead the bankruptcy court to deny

Should I File for Chapter 7 Bankruptcy If I Recently Purchased an Expensive New Car?

Everyone would like to sail through bankruptcy without any problems—but that might not happen if you file Chapter 7 bankruptcy soon after buying a new expensive car.