Chapter 7 bankruptcy is designed to erase unsecured debts, including:
In order to file for Chapter 7 bankruptcy protection, you must qualify under the means test, obtain credit counseling and complete a debtor education course.
This barrier to debt relief was put in place by Congress to reserve Chapter 7 for those who are truly in need to its powerful debt discharge. The good news is that most people who are considering filing Chapter 7 meet these requirements. Ask a bankruptcy lawyer whether you qualify to discharge your debts through Chapter 7 bankruptcy:
Chapter 7 Bankruptcy Means Test - This test determines whether you're eligible to file Chapter 7 bankruptcy based on your debts, income, assets and state exemptions.
State Median Incomes - Learn the median income in your state. The Chapter 7 means test is mostly based on the median income for each state. If your annual income is at or below the median for your state, then you are most likely eligible to file Chapter 7.
Credit Counseling Q&A - By law, everyone must receive credit counseling briefing before they file Chapter 7 bankruptcy. Find out how you can complete the requirement online or over the phone.
Debtor Education Course - By law, everyone must also complete a debtor education course before they receive their Chapter 7 debt discharge. Find out how you can complete this requirement online or over the phone.
Chapter 7 bankruptcy is a real debt solution for many people; however, not everyone is eligible to file.
If you have questions about your Chapter 7 eligibility or if you’re considering Chapter 13, fill out the above form to speak with an attorney about your bankruptcy options.