Reaffirm & Keep Property
Continue making payments to keep your home, car, or other secured assets. This option allows you to maintain ownership while staying current on your loan obligations.
Chapter 7 Bankruptcy – A Fresh Start
Chapter 7 is the most common type of bankruptcy. It is designed to help people quickly eliminate overwhelming debt and move forward.
Why Choose Chapter 7?
Wipe Out Unsecured Debt
Eliminate credit cards, medical bills, and personal loans permanently.
Keep Your Essentials
Most clients keep their home, car, and personal belongings.
Fast Relief
The process is typically complete in just a few months.
The Chapter 7 Process
1
File Your Case
We submit your bankruptcy petition to the court, listing all debts, assets, and income.
2
Automatic Stay
Creditors must immediately stop calls, lawsuits, garnishments, foreclosure, and repossession.
3
Meeting of Creditors
A short5-minute Zoom meeting with the trustee. Creditors rarely attend.
4
Discharge
After ~60 days, your debts are eliminated, giving you a fresh financial start.
What Happens to Secured Debts?
Your options for keeping, redeeming, or surrendering property.
Redeem Property
Pay the fair market value to fully own the property. This option can be cost-effective if the property's value is less than what you owe on the loan.
Surrender Property
Return the property and wipe out your liability on the loan. This option provides a fresh start by eliminating the debt associated with the secured property.
What Debts Can Chapter 7 Eliminate?
Discharged Debts
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Credit card debt
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Medical bills
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Personal loans
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Utility bills & other unsecured debts
Not Discharged
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Student loans (rare hardship exceptions)
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Alimony & child support
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Certain taxes
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Court fines, restitution, and fraud-related debts
What Does Chapter 7 Cost?
Understanding the costs involved in filing for Chapter 7 bankruptcy helps you make informed decisions about your financial future. We believe in complete transparency with our clients.
Court Filing Fee
$335 - This fee can be paid in monthly installments or waived if your income is below 150% of the federal poverty level.
Attorney Fees
Affordable payment plans are available to fit your budget. We offer flexible options to ensure legal representation is accessible.
Is Bankruptcy Right for You?
Take Control of Your Financial Future
Bankruptcy is designed to give you a fresh start, not punish you. In fact, federal law prohibits discrimination against anyone who files.
While bankruptcy will appear on your credit report, many people begin rebuilding credit quickly after filing. In many cases, your financial life improves dramatically because:
How life improves after filing
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Collection calls stop
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Income goes to living needs, not endless debt
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You can start saving and planning for the future
Who Qualifies for Bankruptcy?
Chapter 7 Means Test
To qualify for Chapter 7, your household income must be below your state’s median family income for your family size. If your income is higher, you may still qualify after deducting allowable living expenses.
- If you pass the test, you can file Chapter 7.
- If you don’t pass, you may still qualify for Chapter 13 repayment instead.
Chapter 13 Debt Limits
You may be eligible for Chapter 13 if your debts fall within certain limits and you have steady income to support a repayment plan:
- Unsecured debt is under $394,725
- Secured debt (like mortgages and car loans) is under $1,184,200
- You have regular income to fund a repayment plan
Special Issues in Bankruptcy
Car Loans
Chapter 7: Keep (reaffirm), redeem at market value, or surrender and discharge the loan.
Chapter 13: Reduce payment, lower interest, sometimes "cram down" to car value.
Mortgages
Chapter 7: Be current or make an agreement to keep home; otherwise surrender and discharge debt.
Chapter 13: Catch up missed payments over time; possibly remove junior mortgages.
Student Loans
Usually not dischargeable unless undue hardship (e.g., Brunner Test).
Taxes
Dischargeable if ALL: 3+ years old, return filed 2+ years before, no fraud, assessed 240+ days before.
Not dischargeable: Payroll/trust-fund taxes.
Counseling & Education Requirements
- Credit Counseling: One-hour, pre-filing.
- Debtor Education: Financial course post-filing, pre-discharge.