Chapter 7

Chapter 7: Liquidation (“Straight Bankruptcy”)

Court fees: $306. Attorney fees: are a separate charge and will be found in your fee agreement.

  1. Chapter 7 is designed for lower-income debtors in financial difficulty who do not have the ability to pay most or all of their existing debts  & want to discharge some or all of those debt obligations. The debtor must have qualifying income and sufficient exemptions to protect their property and possessions. Chapter 7 bankruptcy debtors whose debts are primarily consumer debts are subject to a “means test” designed to determine whether the case should be permitted to proceed under chapter 7 or be referred to a Chapter 13 payment-plan bankruptcy.
  2. Under chapter 7, a debtor may claim certain of property & possessions as exempt (protected). A trustee may have the right to take unprotected possession of and sell the remaining property or possessions, but this rarely happens.
  3. Even if a debtor receives a general discharge, some particular debts are not discharged under the law. Therefore, a debtor may still be responsible for most taxes, child-support and student loans; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, or theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged

Gary Bollinger and the Bankruptcy Center serves as a Debt Relief Agent: that is, we help people get debt relief under the Bankruptcy Code.