Chapter 7 bankruptcy, also known as liquidation bankruptcy, is typically the quickest and simplest form of bankruptcy. It is also the most common type of bankruptcy for individuals. Many individuals prefer filing for chapter 7 bankruptcy because the entire process, from start to finish, usually takes an experienced firm like Williams & Cluff only about 3 or 4 months.

In order to qualify for chapter 7 bankruptcy, you must meet certain requirements. Your income and expenses will be examined to determine whether or not you meet these requirements. Qualification is based on your household income compared to the median household income for your state, which is determined by the IRS. If your income is less than your state’s median income, it is likely that you will be able to file for chapter 7 bankruptcy. There are, however, other qualifications that you should discuss with your attorney, as they may be case specific.

In a chapter 7 bankruptcy, you may be able to maintain some of your assets, including your house and car, if you are current (within 30 days) on your payments towards those assets. You may also be able to keep any equity you hold in your house or car. A practiced attorney can also help you keep your 401K or other retirement funds, if you qualify. Also, you should know that it is illegal for your employer to fire you based on your chapter 7 bankruptcy filing.

If you are considering filing for chapter 7 bankruptcy, do not hesitate to call an attorney right away. There are many laws associated with filing for bankruptcy, including laws about treatment and selling of property and making payments to creditors. You need to make sure you do not do anything that could be considered defrauding your creditors.

To make sure your case is handled correctly, call Williams & Cluff as soon as possible for a free consultation about your case. We will be more than happy to help your experience filing for chapter 7 bankruptcy be as smooth as possible.

Still have questions about filing for bankruptcy? Visit our Frequently Asked Questions page to find answers to some of the most common bankruptcy questions.