Chapter 7 Bankruptcy

Chapter 7 is the most common bankruptcy for simple consumer debt.  Under Chapter 7, you will usually have all of your debts erased, or “discharged.”

In order to determine whether you can take advantage of Chapter 7 or not, bankruptcy attorney Dan Gindes would take into account a complete picture of your finances.  If you live in a household that has a median income below the state average, you can file Chapter 7 bankruptcy without any further analysis.  (For example, in Massachusetts, the median income for a two-person household is approximately $70,800, and a four-person household is approximately $108,500.)

Even if your household income is higher than the figures indicated above, we can run a “means test” to determine whether Chapter 7 is still an option for you.  Most clients will still be able to file Chapter 7 bankruptcy after these calculations are done.  For more information about determining whether or not you can file Chapter 7, see The Procedure For Filing Bankruptcy

To take advantage of Chapter 7, you must show that you have more debt than you can manage – that your monthly income isn’t enough to repay your debts and live reasonably.  You will be able to keep your personal property such as your car, home equity, clothes, furniture, personal injury claims, and other assets, subject to certain limits.

If your household income is high, or you have substantial equity in your home, or if you have other significant assets such as expensive art, antiques, boats, or second homes, then a Chapter 13 bankruptcy may be a better choice for you.  Please call our office for a free, no obligation consultation with bankruptcy lawyer Daniel Gindes.

Remember, certain debts cannot be erased in bankruptcy.  Student loans, some taxes, child support, alimony, court-ordered criminal restitution, and some other specific debts may not be discharged.  If you have any such debts, call bankruptcy attorney Daniel Gindes about your options.

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Chapter 7 Bankruptcy