Chapter 7

Chapter 7 Bankruptcy
(530) 487-8756

What is a chapter 7 bankruptcy?

In many cases, a chapter 7 bankruptcy will allow you to eliminate all your medical bills, credit cards, and other unsecured debts, and retain all your property. A chapter 7 is also known as a liquidation bankruptcy.

Sometimes income tax debts that are more than three years old can also be eliminated. Child and spousal support cannot be eliminated.

Student loans can only be discharged if you are able to prove “undue hardship” which is extremely hard to do.

Chapter 7 is often an affordable option for people that don’t have too much income or don’t have a lot of property. Whether it will work for you depends on your household size and other factors. If you give me a call I will be glad to analyze your individual situation on the phone.

As of September, 2021, you generally qualify if your gross income is less than $5,245 for a single person, $6,953 for a family of two, $7,728 for a family of three, and $8,878 for a family of four.