Imagine Yourself Debt Free!

  • COMPLETELY WIPE AWAY ALL ELIGIBLE DEBT
  • IMMEDIATELY STOP HARRASING PHONE CALLS AND LETTERS
  • STOP LAW SUITS AND GARNISHMENTS IN THEIR TRACKS
  • KEEP YOU HOUSE AND CAR WHILE WALKING AWAY FROM BAD DEBT

7 Common Questions asked about Chapter 7 Bankruptcy

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a liquidation proceeding that will allow you to completely eliminate most of your debts. In this Chapter, you can wipe out credit card debts, medical bills, personal loans that are not secured by real estate or some other secured property, apartment complex debts, debt from a repossessed car, charged off accounts, delinquent utility bills, and even old tax debt.

What does liquidation really mean in a Chapter 7?

A chapter 7 bankruptcy case does not involve the filing of a repayment plan like that in a chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders creditors in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets.

What does Automatic Stay mean in Bankruptcy?

The Automatic stay will stop creditors in their tracks from making harassing phone calls and give you the immediate relief you need. When you file for bankruptcy under United States Federal Bankruptcy Law, it will trigger an automatic stay. This is an immediate mechanism that will suspend all actions by any creditors you list on your bankruptcy from trying to collect from you. The automatic stay has some restrictions and you may need to speak to the attorney for further about this.

Am I eligible for a Chapter 7 Bankruptcy?

In bankruptcy, the “means test” is used to determine whether your income is low enough for you to file Chapter 7 bankruptcy. The means test is a specific formula that considers your income, assets, debts, and state exemptions to determine your monthly disposable income. Ultimately, it is a formula designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. High income filers who fail the means test may use Chapter 13 bankruptcy to repay a portion of their debts, but may not use Chapter 7 Bankruptcy to wipe out their debts altogether. Speak with an attorney to learn if Chapter 7 bankruptcy is right for you.

Can I keep my Car or Home in a Chapter 7?

Yes, you can keep you car or home, but the loan securing the house or the car must be current at the time of filing. If you have personal loans that are secured by real estate and you want to keep your home, those personal loans must be paid. If you do not want to keep your home, those personal loans do not have to be paid and can be eliminated in a Chapter 7.

Will Chapter 7 allow me to discharge all of my debt?

You cannot discharge student loans, child support arrearages, and alimony. State and federal taxes can be discharged under Chapter 7 under very limited circumstances.

What consequences will I face after filing a Chapter 7 Bankruptcy?

A Chapter 7 bankruptcy will show up as a bankruptcy on your credit reports. A Chapter 7 bankruptcy will remain on your credit report for 10 years from the date you file. You can only file a Chapter 7 once every 8 years. If you were to find yourself in a situation where you had to file again, within that 8 year period, you will probably only be eligible to file a Chapter 13 bankruptcy.


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What will it cost me to file Chapter 7 Bankruptcy with RS Johnson Legal, P.C.?

The Bankruptcy Court filing fee is $299.00.
Our attorney fees for a Chapter 7 bankruptcy range from $1,000 to $1,200.
We offer flexible payment arrangements.

What are your office hours?

Our attorneys are available to meet with you by appointment. We offer flexible appointment times between the hours of 9am to 6pm Monday – Friday. Saturday appointments are available by appointment between the hours of 9am to 12 pm. Click here to schedule an appointment.

I’m ready to File Chapter 7 Bankruptcy. How can I get started?

Our attorneys look forward to working with you. Click here to learn more about our simple process?

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