Chapter 7 Bankruptcy
Serving Madisonville & the Surrounding Communities
Bankruptcy Specialist Joy
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
contact the firm today!
Areas of Practice