Chapter 7 Bankruptcy Attorney
This is the most common type of bankruptcy, yet it is the most restrictive. Chapter 7 bankruptcy is called a liquidation bankruptcy because nonexempt assets are liquidated. Nonexempt assets are assets that are unprotected by federal and state exemption laws. These exemption laws tell us what assets are protected. Filing for Chapter 7 can help you make a fresh start. To discuss your options and alternatives, feel free to contact me today for a free consultation.
In determining whether you must file a Chapter 7 or Chapter 13 bankruptcy, you must calculate your average monthly income over the last 6 months. This amount is then compared to the “Median State Income” to determine if it is above or below a household of similar size. If it is below, then you have passed the first hurdle in determining if you qualify for a Chapter 7. If you are above the average median state income, you still may qualify for a Chapter 7 under the Means Test, but the entire form must be completed where deductions are permitted for health insurance, health savings account, term life insurance, daycare expenses, etc. Only after a complete review of the Means Test can it be determined if you qualify for a Chapter 7 or if you must file a Chapter 13 bankruptcy.
Learn about Chapter 13.