Chapter 7 is known as a liquidation bankruptcy, total bankruptcy, or the clean-slate bankruptcy. it can be filed by either individuals or businesses.
You may be allowed to retain possession of any property classified as ‘exempt’ under the bankruptcy laws: these assets can include clothing, cars, equipment used for work such as tools and household furnishings. If your property value is less than the exemptions available, your case is a ‘no asset’ case and you can keep the property and lose the debt.
Am I Eligible for Chapter 7?
Not everyone is eligible for Chapter 7 Bankruptcy protection. Your income and debt will be subjected to a ‘means test’ to determine if you qualify. If you aren’t eligible for Chapter 7, filing for Chapter 13 may still be an option.
Will Filing for Bankruptcy Erase My Debts?
Filing for bankruptcy erases much of your debt, however you will remain responsible for the debts including child support, spousal support obligations, student loans and most unpaid taxes.
How Do I know What is Right For Me?
Contact Brian T Canupp, PSC today to allow us to determine what is best for your specific situation.