Considering Chapter 7 Bankruptcy? What is it?

Chapter 7 Bankruptcy Lawyer in Kansas City on Possible Benefits

Below is information about Chapter 7 bankruptcy. We include information about how to qualify, the process and the discharge as well as about non-dischargeable debts. For more information, or to speak with one of our Chapter 7 bankruptcy attorneys, then please call our law firm now.

People who qualify for Chapter 7 bankruptcy are able to keep personal property and discharge unsecured debts in 99 percent of cases.

Do I Qualify for Chapter 7 Bankruptcy?

There is no minimum amount of debt necessary to file for bankruptcy. To qualify for relief under Chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, a corporation or other business entity. However, an individual cannot file under Chapter 7 or any other chapter, if, during the preceding 180 days:

  • A prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court
  • The debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens

In addition, debtors under Chapter 7 or any chapter of the Bankruptcy Code must, within 180 days before filing, receive credit counseling from an approved credit-counseling agency. This can be either in an individual or group briefing. The credit counseling session can be arranged through your attorney and can be taken over the phone or on the computer.

What Happens in a Chapter 7 Bankruptcy?

Chapter 7 bankruptcy lawyer researching a case

A Chapter 7 case begins with the debtor filing a petition with the bankruptcy court. In addition to the petition, the debtor must also file with the court:

  1. Schedules of assets and liabilities
  2. A schedule of current income and expenditures
  3. A statement of financial affairs
  4. A schedule of executory contracts and unexpired leases

Debtors must also provide the assigned case trustee with a copy of the federal and state tax returns or transcripts for the most recent two tax years as well as tax returns filed during the case. This includes tax returns for prior years that had not been filed when the case began.

Individual debtors with primarily consumer debts must file:

  • A certificate of credit counseling
  • A copy of any debt repayment plan developed through credit counseling
  • Evidence of payment from employers, if any, received 60 days before filing
  • A statement of monthly net income and any anticipated increase in income or expenses after filing
  • A record of any interest the debtor has in federal or state qualified education or tuition accounts

A husband and wife may file a joint petition or individual petitions. On the other hand, one spouse can even file individually, without the other spouse filing at all.

Call a Chapter 7 Bankruptcy Lawyer for Legal Advice

Our attorneys have helped hundreds of individuals, families and businesses take charge of their debts in Chapter 7 bankruptcy. We offer a free and confidential phone consultation. In 10 to 15 minutes, you can then decide if seeking debt relief through bankruptcy is the best choice for you. With our over 30 years’ combined legal experience, the bankruptcy lawyers at The Sader Law Firm pride themselves on being able to simplify the bankruptcy process and file cases fast and accurately. Our focus is on bankruptcy and gaining clients financial stability. That is what we are here to help you achieve.