Boca Raton Bankruptcy Lawyer

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is quite common here in the United States. This type of bankruptcy calls for the liquidation of one’s estate in order to pay back creditors, as opposed to the reorganization of one’s debts (Chapter 11). It is relatively cheap and not as demanding as compared to other chapters, so it is the method of choice for many. Chapter 7 is sometimes also known as “liquidation bankruptcy” or “straight bankruptcy.”

Chapter 7 may be either voluntary or involuntarily filed by or against an individual or a company. In the case of an individual, he or she may claim certain assets as exempt if he or she does not wish for these items to be taken away and liquidated. Once bankruptcy has been filed, most unsecured debt is discharged. However, there are 19 forms of this type of debt that remain intact, including child support, student loans, and, sometimes, spousal payments.

There are certain eligibility requirements that individuals or companies must meet before filing for Chapter 7 bankruptcy. If one has already received bankruptcy discharge within the past 8 years, or if one could potentially file instead for Chapter 13 bankruptcy, then he or she cannot choose Chapter 7. Potential filers must also not have an annual income that exceeds a certain amount, as defined by “the means test.”

Contact Us

If you would like more information on how to file for Chapter 7 bankruptcy, or if you would like to know whether or not you qualify for this type of bankruptcy, please contact Boca Raton bankruptcy lawyer Eric N. Klein, P.C. today at 561-353-2800 to schedule an appointment.