What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy allows liquidation of assets to pay creditors. Unsecured priority debt is paid first in a Chapter 7, after which comes secured debt and then nonpriority unsecured debt. Filing Chapter 7 typically involves completing forms and a review of assets by the trustee.

What is the main purpose for a Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy, the court places an automatic temporary stay on your current debts. This stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities.

How bad is a Chapter 7 bankruptcy?

The consequences of a Chapter 7 bankruptcy are significant: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date. Should you get into debt again, you won’t be able to file again for bankruptcy under this chapter for eight years.

Will my employer know if I file Chapter 7?

In a Chapter 7 bankruptcy, your employer typically will not know that you filed. In a Chapter 13 bankruptcy, your employer usually will be notified because your monthly payment comes out of your paycheck.

Can you be denied a Chapter 7?

The rejection or denial of a Chapter 7 bankruptcy case is very unusual, but there are reasons why a Chapter 7 case can be denied. Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself.

Can I keep my car in Chapter 7?

If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you’re current on your loan payments. They may also give you the option to pay off the equity at a discount in order to keep the car.

Can you file Chapter 7 if you make a lot of money?

To qualify for Chapter 7 bankruptcy, your income must be the median income in your state or less. If you do not, you can still qualify for Chapter 7 bankruptcy even if your income is very high. High-income Chapter 7 bankruptcy filers have to prove that they are filing their petitions in good faith.

What exactly is a Chapter 7 bankruptcy?

A Chapter 7 bankruptcy is a bankruptcy case in which we give the debtor, the person who owes all the money, a fresh start, a new beginning. It essentially wipes out or erases the debt that the debtor has.

What are the steps of a Chapter 7 bankruptcy?

8 Steps to Filing Chapter 7 Bankruptcy Step 1: Your free phone call Step 2: Your Free Debt Consultation Step 3: Gather the papers we need to prepare your bankruptcy & complete Credit Counseling . Step 4: Your finish-up appointment. Step 5: Filing your case with the Court Step 6: The meeting of creditors (341 hearing)

What is the process of a Chapter 7 bankruptcy?

The Chapter 7 bankruptcy process typically takes from four to six months to complete. For the person filing, it involves filling out and filing some forms, attending a meeting with the creditors and a court-appointed bankruptcy trustee, and getting most or all of the debts discharged. There are filing fees of $335.

What is a basic Chapter 7 bankruptcy?

you must prepare a corporate resolution.