What is Bankruptcy?
Am I Eligible for Chapter 7 Bankruptcy to Eliminate My Unsecured Debt?
Chapter 7 Bankruptcy allows for the liquidation of an individual’s debt. In a Chapter 7 Bankruptcy, clients typically complete the entire process within 180 days, at which point debts are discharged and the debtor is no longer legally bound to repay debts that have been discharged.
On October 17, 2005, new bankruptcy law went into effect, requiring debtors to use the means test to prove their eligibility to file a Chapter 7 Bankruptcy. If you fall below the means test threshold or below a threshold amount that is calculated based on IRS reported income figures for your county, you can still seek debt relief by filing a Chapter 7. If you are above the threshold amount, you must file a Chapter 13 Bankruptcy.
