Chapter 7

Chapter 7 Bankruptcy

Put an End to Debt Worries

Chapter 7 is a legal proceeding that is initiated in the United States Bankruptcy Court, at the request of a debtor who has chosen to take advantage of the federal laws that allow for a “fresh start” and for the elimination of oppressive debt. It is a choice made by the debtor, after consultation with and a detailed analysis by a competent attorney. The debtor chooses to take advantage of the benefits and protections of this law in order to improve the debtors financial situation. Filing for bankruptcy is filing for assistance and benefits made available by law.  Bankruptcy is protection for the consumer.

Collections and Harassments stop.

The Bankruptcy Court issues an “automatic stay” as soon as the attorney files the bankruptcy petition on behalf of the debtor. The “automatic stay”, a type of injunction, or order to stop doing something, immediately stops most legal proceedings and collection efforts against the debtor.  Such as lawsuits, garnishments, demand letters, repossessions and collection calls.

Qualifying for Chapter 7

Any person who resides in the United States, or is domiciled here or who has business or property in the United States can be a Debtor under Chapter 7. So long as the debtor has not received a Chapter 7 discharge within the preceding eight (8) years or a Chapter 13 discharge within the preceding six (6) years, and the debtor makes less than the median income for the state of residence, the debtor is entitled to the relief and protection of Chapter 7. The median income for each of the states, generally falls within a range of $45,000 for single-person households and $80,000 for households of four people.

Cost of Chapter 7 Bankruptcy?

The Court collects a filing fee of about $275.00. The added responsibilities and expertise required of attorneys since the legislative changes of 2005 have caused an increase in the fees charged by bankruptcy attorneys. A typical fee charged by attorneys for representing you from beginning to end is between $1500 and $2000. You will find that most attorneys require that the agreed upon fee be paid before significant work is performed on your case and, in most all cases, before the petition is filed with the Court.

Will My Possessions Be Taken in a Chapter7 case?

Typically, the debtor does not lose any property in a Chapter 7 case. The debtors attorney must list the property owned by the debtor, but almost all property owned by a typical debtor is exempt from forfeiture or is of such little value that the trustee and creditors are not interested in trying to obtain the property. The loss of any property by the debtor is extremely, extremely rare and the fear of such a result should not discourage debtors with troublesome financial trouble from taking advantage of the remedies offered by the bankruptcy laws.

If you need help from a qualified Olathe Bankruptcy Attorney that will not pressure you – and simply answer your questions, call me at 913-782-7075.