Chapter 7

How To Qualify For Chapter 7 Bankruptcy & Next Steps

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 or married couple (only married couples can file a joint case), a partnership, a corporation or another business entity. There is a Means Test in place for Chapter 7 debtors whose debts are mainly consumer debts, such as a mortgage, credit cards and hospital bills. If more than 50% of your debts are business related, you may be exempt from the Means Test. To qualify for Chapter 7, you will need to review with your attorney your income, household size and expenses and see if you qualify under the Means Test. For those who do not, Chapter 13 bankruptcy often provides an excellent option. 

However, an individual cannot file under Chapter 7 if that individual filed for Chapter 7 bankruptcy within the last 8 years. Additionally, individuals cannot file for 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 (as well as Chapter 13) must receive credit counseling from an approved credit-counseling agency within 180 days before filing and must also take a Financial Management Course after filing the case but before the Discharge Order is entered. At Sader Law Firm, we will arrange for you to complete both courses, which you can take at home over the phone or computer. We work with you to make the entire debtor education and filing process as easy as possible.

The Chapter 7 Process, Simplified

Typically, a person or couple interested in bankruptcy will call or email our office seeking information. If the initial contact is by phone, an SLF lawyer will visit with the caller right away and offer a free phone consultation. If you reach out by email, we will respond and try to set up a phone consultation. Speaking in real time allows you to ask questions and obtain answers very quickly and ask important follow up questions to make sure all the information is understood. In that free consultation we will determine whether bankruptcy will be of help and the type of filing that would be best. If it appears a Chapter 7 filing would be helpful, the attorney will offer to email to the caller a simple to follow Form Packet that lists most all the information needed at a first meeting. We ask that a potential client fill out the forms as thoroughly as possible so we can best review the situation. A first meeting can be in our Kansas City office or held virtually.

After the SLF lawyer receives the needed information, a Chapter 7 case begins with the filing of a petition with the bankruptcy court. In addition to the petition, the filing must also include a number of documents and financial records. Debtors will provide SLF, who in turn will review and then forward the assigned case trustee 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. In addition, debtors must provide all their paystubs over the six (6) months prior to filing and copies of titles to homes and vehicles. Those who qualify for Chapter 7 bankruptcy can keep personal property and discharge unsecured debts in 99% of cases. SLF attorneys will work to make sure that your case goes as smoothly and quickly as possible.

Want To Know More? Give Us A Call

Our attorneys have helped thousands of individuals, families and businesses take charge of their debts in Chapter 7 bankruptcy. We offer a free and confidential phone consultation. In 15 minutes or less, you can decide if seeking debt relief through bankruptcy is the best choice for you. The experienced bankruptcy lawyers at Sader Law Firm pride themselves on simplifying the bankruptcy process and filing cases fast and accurately. Our focus is on bankruptcy and gaining clients financial stability. That is what we are here to help you achieve.

WHY CHOOSE SADER LAW FIRM?

  • You will speak to a lawyer on your first call at no charge
  • Phone calls and emails returned promptly
  • Stop foreclosures, garnishments and lawsuits quickly
  • Initial calls are always free
  • Calls all answered locally by our office in Kansas City
  • We are not a mill
  • Schedule a one-on-one appointment with a lawyer to visit in-person or virtually.
  • Reasonable rates and payment plans
  • Can file cases quickly, even next day
  • BBB Accredited

LET’S START FINDING SOLUTIONS TODAY.

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