If you're considering filing for Chapter 7 bankruptcy, it's likely a decision you don't take lightly. You may have a long list of questions with little idea of where to direct them. A licensed attorney will give you answers, but below are some of the most commonly asked questions to help you decide whether Chapter 7 is the right choice.

The Craig Black Law Firm takes a personal approach to bankruptcy cases. If you have any questions about Chapter 7 bankruptcy, give me a call at 678-888-1778 or complete my confidential contact form.

What Is the Difference Between Chapter 7 and Chapter 13?

Chapter 7 is also known as a liquidation bankruptcy. Chapter 13, on the other hand, is known as a reorganization bankruptcy. With Chapter 7, all eligible debts are discharged, letting you start over with minimal debt. With Chapter 13, you will propose a payment plan that the court will approve.

Can Anyone File for Chapter 7 Bankruptcy?

No. In order to qualify, you'll need to pass a means test detailing your income for the past six months. If your income falls below the Census Bureau's median income for your state, you'll qualify. Otherwise, you'll need to show that your necessary debts offset your income.

Are All Debts Discharged in Chapter 7?

While a Chapter 7 filing will erase debts like credit cards and personal loans, some debts will remain intact. Debts that you'll still owe after Chapter 7 bankruptcy include:

·      Recent tax debt

·      Child support

·      Alimony

·      Government loans

·      Student loans

·      Debts for causing personal injury or death

·      Debts obtained fraudulently

Do I Have to Go to Court?

Bankruptcy proceedings don't take place in a courtroom. Instead, you'll meet with a trustee assigned by the court via a Zoom meeting. This meeting typically only lasts 10 to 15 minutes and simply seeks to clarify the information you provided. If there are other matters to be handled in court, those proceedings will also take place via Zoom meetings.

Will I Lose All My Assets?

Having your debts discharged comes at a cost. Your assets will be sold, with the proceeds helping offset the money you won't be paying back. The good news is some of your assets will be exempt from sale, and you can keep those assets. They include:

·        Homes up to a certain equity

·        Cars up to a certain value

·        Clothing, household goods, and home furnishings

·        Alimony and child support

·        Retirement savings

·        Business equipment and tools

·        Public benefits

·        Personal injury damages

Do I Need an Attorney to File?

You can file for Chapter 7 without a lawyer, but legal help can come in handy. From the start, an attorney can advise you on what to expect once your paperwork is submitted. We can also help you complete the paperwork, reducing your risk of delays, and sit in on your trustee meeting.

The Craig Black Law Firm and Chapter 7

If you're considering bankruptcy, the Craig Black Law Firm can help. I have extensive experience with Chapter 7 filings. To get in touch with me, call 678-888-1778 or complete this confidential online form.