Chapter 7 Bankruptcy Information

Chapter 7 bankruptcy is a liquidation process that may be a good debt solution for people who are overwhelmed with unsecured debts, including medical bills, credit cards, IRS debt, payday loans, wage garnishments or personal loans. Chapter 7 is the most common type of bankruptcy that is filed and is the quickest way to eliminate your unsecured debts.

In order to file for Chapter 7 bankruptcy, you need to have a petition submitted to the closest bankruptcy court. In doing so, creditors are prohibited from taking any further action against you. However, filing for Chapter 7 is not the right solution for everyone. In order to qualify, you need to take and pass a test that will look at your disposable income and median income. If you earn more than what the median income in your state is over a six-month period, or if you have disposable income over the course of the next five years that totals over $10,000, you will not be qualified to file for Chapter 7.

Filing for Chapter 7 bankruptcy may be the right solution for you, but it is not a solution for everyone with debt. Reach out to the proficient attorneys at the Consumer Advocacy Center to find out more about Chapter 7 and also see what your options are for dealing with debt.