September 25, 2017

Chapter 7 Bankruptcy

Chapter 7 BankruptcyA chapter 7 bankruptcy, commonly known as a “liquidation bankruptcy,” discharges a debtor from most debts, and provides for an orderly distribution of non-exempt assets (liquidated into cash) to pay a dividend to creditors.  Debtors, however, have the right to retain property based on exemptions, or laws that protect property.  In most cases, debtors who file a chapter 7 bankruptcy will not have to reliquish or lose any property due to the protection provided by these exemptions.

Certain debts are not dischargeable in a chapter 7 bankruptcy, and include, among other debts, domestic support obligations and certain tax liabilities (although some tax liability is dischargeable in bankruptcy).

Most unsecured and secured debts will be discharged in a chapter 7 bankruptcy, including medical debt, credit card debt, auto loan deficiencies, and other consumer debts and business debts.

A hallmark of a chapter 7 bankruptcy is the “Means Test.” The Means Test factors in household size and income to determine a debtor’s eligibility for a chapter 7 bankruptcy.  If a debtor has too much income, in many cases, that debtor may be required to file a chapter 13 bankruptcy.

The process for a chapter 7 bankrupcy generally lasts 3 months and includes a hearing about a month after filing before a trustee.

Pursuant to 11 U.S. Code § 528: "I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code."

CAUTION: This website is to provide visitors with basic information about my law office, and information about how to contact me. Every situation is different, and no information on this website is legal advice on any specific question. You should not act on any of the information without first conferring with an attorney licensed in your jurisdiction. No attorney-client relationship or privilege is formed by visiting this site or by unsolicited email. Therefore, initial emails should not contain any confidential information. I may already represent parties adverse to you and cannot advise or represent you until we check for conflicts. I am licensed only in Oregon and offer my services only to those doing business in Oregon, unless I am associated with local counsel in accordance with other states' laws. The applicable laws may have changed after the information on this website was published. While effort is made to keep the information current, you should not presume that all information is up to date. You must confer with an attorney to be sure you have current information.

ContactUs.com