Chapter 7 bankruptcy offers a fresh start by eliminating most debts. If you're overwhelmed by bills, learn whether this option is right for your situation.
Expert information to help you understand your rights and options
Chapter 7 bankruptcy discharges most unsecured debts in approximately 4 months, giving you a fresh financial start. Understand who qualifies under the means test, which debts can be eliminated, what property you can keep, and long-term credit impacts.
The means test compares your income to your state's median to determine Chapter 7 eligibility. Learn how to calculate your current monthly income, allowable deductions, what happens if you fail the test, and exceptions for disabled veterans and certain military members.
Chapter 7 eliminates credit cards, medical bills, and personal loans but cannot discharge child support, most taxes, student loans, or debts from fraud. Learn exactly which debts survive bankruptcy and options for dealing with non-dischargeable obligations.
Bankruptcy exemptions protect essential property from liquidation, including your home, car, retirement accounts, and personal belongings. Understand federal vs. state exemptions, homestead exemption limits by state, and how to maximize asset protection legally.
Most Chapter 7 cases complete in 3-4 months from filing to discharge. Understand each stage including credit counseling, the 341 meeting of creditors, objection deadlines, and when you receive your official discharge order.
