The three most important questions in Chapter 7 Bankruptcy are as follows:

  1. Are you eligible?
  2. What assets or property do you have?
  3. What kind of debt do you have?

1.  Are you eligible?

To be eligible for Chapter 7, one must fall below the median income for your state, based on the size of your household. This number is constantly evolving as the population changes, but, roughly speaking, if you are under the annual incomes listed below (based on household size) you are eligible to file Chapter 7 Bankruptcy.

***  These numbers change all the time and at the time of production of this website, the below numbers were accurate.  However, the numbers can change based upon many, many factors.  This is only for a rough estimate.  DO NOT RELY ON THESE NUMBERS!  Call for an appointment to see if you qualify.

Single Earner      $47,414.00  

Two-Earners        $59,631.00

Three Earners     $70,151.00  

Four Earners       $83,614.00

If your annual income is over the median income listed above, then you may still be eligible for Chapter 7 or you may want to consider Chapter 13 bankruptcy. If you have more questions, contact one of our attorneys for a consultation.

Not Eligible for Chapter 7? Worried about losing your Property?

That’s okay. There is another option for you. Click here.

2. What assets or property do you have?

Assets are property, money, things, stuff, or anything else of value that you own. Your assets are a major consideration in filing for Chapter 7 Bankruptcy. When you file for bankruptcy, any property that is over a certain exemption level is used to pay off your creditors. Luckily, there are many exemptions. A list of more common exemptions are listed below:

  • $150,000.00 in home equity
  • $4,000.00 in car equity
  • $12,500.00 in household goods
  • Security deposits
  • 401(k), 403(b), and other retirement plans
  • And many, many more.

Note: exemptions are not available to corporations declaring chapter 7 bankruptcy.

If you have more questions about exempt property, contact one of our attorneys for a consultation.  

3. What type of debt do you have?

It is important to note that only certain types of debt are dischargeable in bankruptcy. Credit card debt and most consumer debt can be discharged. This type of debt is called unsecured. Unfortunately, some debt cannot be discharged,. The more common types of debt you cannot escape include:

  • Student Loans
  • Mortgages and other liens not paid in the bankruptcy case
  • Money owed for child support, court ordered fines and taxes.
  • Loans obtained by providing false information to the lender.
  • Debts resulting for willful and malicious harm.
  • Personal Injury debts.
  • Debt incurred after you file bankruptcy

If you have more questions about debt that cannot be discharged, contact one of our attorneys for a consultation.