Chapter 7 Bankruptcy Laws

Chapter 7 Bankruptcy Laws

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For millions of Americans struggling with debt, filing Chapter 7 bankruptcy can be the first step toward real financial relief. Figuring out the intricacies of Chapter 7 bankruptcy law can seem almost as overwhelming as dealing with the bills each month.

A Chapter 7 lawyer can break down the legal terminology help you understand the bankruptcy process. You can connect with a local bankruptcy attorney to learn about your options – simply fill out the below form to connect today.

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Understanding Chapter 7 Bankruptcy

Before Filing Chapter 7 Bankruptcy

  • The Chapter 7 Means Test: The means test is a qualifying test that you must “pass” in order to receive protection under Chapter 7 of the U.S. Bankruptcy Code. The test requires you to compare your income to the median income of a family your size in your state. If your income is lower than the median, you “pass” and can file under Chapter 7. If not, you may still qualify – you just have to perform further calculations under the means test.
  • Credit Counseling Briefing: If you want the bankruptcy court to accept your petition, you must receive a credit counseling briefing from an accredited budget and credit counseling service before filing. Chapter 7 bankruptcy law requires this briefing to make sure you, the petitioner, know all your options for getting out of debt.

After Filing Chapter 7 Bankruptcy

  • Chapter 7 Exemptions: These exemptions serve to protect your possessions from creditors. Part of the bankruptcy code, exemptions are a guide to the types and amounts of property that are protected by sale when you file Chapter 7. Because of exemptions, there is no property sale of any kind in most Chapter 7 cases. Exemptions vary by state, but generally include a home, work tools, clothes, etc.
  • Debtor Education Course: Before you’re eligible for your Chapter 7 discharge, you must complete a debtor education course. Like the credit counseling briefing, this is part of Chapter 7 bankruptcy law that was introduced by BAPCPA. The course is designed to help you develop skills for budgeting, managing money and making the most of your fresh start.

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Get Answers To Your Bankruptcy Questions

This is only a brief look at the laws that could affect your bankruptcy case. Keep in mind that all laws are complex, and the bankruptcy code varies from state to state.

To fully understand how your local laws could affect you, speak with a local Chapter 7 bankruptcy attorney. Your attorney can take you through bankruptcy process, answer your questions and help you take advantage of all the protection and debt relief offered by the law.

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