A Chapter 7 bankruptcy is known as “liquidation.” A trustee liquidates the debtor’s non-exempt property in order to make distributions to creditors. If you do not have significant non-exempt property, you may have a “no-asset” case, in which your creditors would not receive any proceeds from your bankruptcy estate.
Most debts will be discharged under a chapter 7 bankruptcy. Money owed for child support, student loans, court fines, fees and penalties; some federal and states taxes, and debts incurred through fraud are not normally dischargeable. Please contact our office to discuss whether your debts are dischargeable.
To proceed with a chapter 7 bankruptcy, a person must qualify for chapter 7 relief under a process called means testing. Our office will determine whether you are eligible to file for chapter 7 bankruptcy. If your income is above the median family income in your state, you may have to file a chapter 13 case. Additionally, if you want to keep property like a home or a car and are significantly behind on your payments, a chapter 13 filing may be the right choice for you.
