Chapter 7 Bankruptcy

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Generally, if your monthly income is less than your monthly expenses and you earn less than the state median income for your household size, you may be eligible for filing under Chapter 7 of the bankruptcy code. In Chapter 7, the most common type of bankruptcy, most debtors get to retain all of their property and discharge their unsecured debts. This process takes approximately four to five months.

Prospective debtors may have many questions as to whether or not they can still file for Chapter 7 under the new law. The answer is Yes! The new law imposes some new requirements, but generally, if you had qualified to file for Chapter 7 under the old law, you will qualify under the new law. All debtors under either Chapter 7 or 13 must take a credit counseling class provided by an approved credit counseling provider. Debtors must also undergo a means test which simply looks at a debtor's income over the previous six months prior to filing and as long as the debtor earns less than the state median income for their household size, they can still file for Chapter 7.

In Chapter 7 cases, debtors are entitled to exemptions under the Bankruptcy Code which can allow them to retain their assets. For example, a husband and wife are entitled to an exemption of approximately $37,000.00 of equity in their house. This means that a couple who files Chapter 7 and owns a house worth $75,000.00 with a mortgage of $40,000.00 will get to keep their house, assuming that they can afford to make the mortgage payments. The Bankruptcy Code provides exemptions for other types of property as well. One main result of filing under Chapter 7 is that the debtor receives a "fresh start".

For either Chapter 7 or Chapter 13 bankruptcy, Gross & Patterson, LLC can help. Contact us today to schedule a FREE case evaluation. Telephone consultations can be arranged.

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Allegheny Foreclosure and Medical Bills Attorneys

Western Pennsylvania Chapter 7 Bankruptcy Lawyers