Bankruptcy Specialist Joy

Chapter 7 Bankruptcy

Serving Madisonville & the Surrounding Communities

Chapter 7 bankruptcy refers to the type of filing for an individual which quickly clears his or her dischargeable debts through a Chapter 7 discharge. Chapter 7 is the most common form of bankruptcy filing in the United States and the fastest. Individuals must qualify for this type of filing under what is called "means testing." To find out more about Chapter 7 and how it may apply to your financial situation, please contact my office for a bankruptcy evaluation. As a bankruptcy attorney, I serve clients throughout Madisonville, Hopkins County, and Webster County.

Debt Liquidation Bankruptcy

Chapter 7 is called a liquidation type of filing. It is a court-supervised procedure involving a Chapter 7 trustee who takes over your nonexempt assets if you have any and converts them to cash to pay your creditors. Because there are usually little if any nonexempt assets, such as boats, timeshares, additional vehicles, and other similar items, there may be no liquidation. Such a case is called a "no-asset" case. In most Chapter 7 cases, the debtor receives a Chapter 7 discharge, releasing him or her from any liability for the dischargeable debts. This usually happens a few months after the bankruptcy petition is filed.

As a Madisonville Chapter 7 bankruptcy lawyer, I can help to determine your eligibility for a Chapter 7 filing under means testing. The means test calculates your disposable income by deducting specific monthly expenses from your monthly income. If your income is too high, you won't be eligible for a Chapter 7 filing. The first step in the means test is to determine whether your income is more or less than the median income in Kentucky.

Not all debts are dischargeable under Chapter 7 filings. Non-dischargeable debts include most tax debts, debts for alimony, child support, or other divorce-related obligations, most student loans, and other penalties and fines. Debts which are dischargeable include credit card debt, past-due medical bills, past-due utility bills, old lawsuits, and payday loans. As a Madisonville Chapter 7 bankruptcy attorney, I can go over your debts with you to establish what can be eliminated in a Chapter 7 filing. To find out more about Chapter 7 bankruptcy and how it may apply to your financial situation, contact the firm today!