What is a Chapter 7 bankruptcy case?
Chapter 7 is a form of bankruptcy that allows debtors to wipe out most of their unsecured debt and any secured debt on property that debtors wish to surrender. Chapter 7 is the quickest and least expensive form of bankruptcy.
Who can file a Chapter 7 bankruptcy case?
Businesses and individuals can file Chapter 7 cases. Chapter 7 cases can be voluntary cases, meaning they are filed by the debtor, or they can be involuntary cases. Involuntary cases are filed by a debtor's creditors. Individuals whose debts are primarily consumer debts must meet the “means test.” The “means test” was put into place in October of 2005, and was designed to make it harder to file a Chapter 7 bankruptcy case. Studies have shown that 98% of the people who want to file a Chapter 7 case can qualify under the means test. Our bankruptcy lawyers can tell you whether you qualify to file for relief under Chapter 7.
What are the advantages of filing Chapter 7 bankruptcy?
One of the advantages of a Chapter 7 case is the speed with which you get your discharge. Every Chapter 7 debtor will go to a first meeting of creditors which is conducted by the trustee. I will attend the meeting with you. Most debtors never meet the bankruptcy judge and never have to appear in Court. The vast majority of Chapter 7 debtors receive their discharge within 120 days of filing. Once the discharge is entered, you can begin to rebuild your credit.
What does it cost to file a Chapter 7 bankruptcy case?
Fees in a Chapter 7 case must be paid, in full, before a bankruptcy lawyer will file your case. My Chapter 7 fees range from $900 to $1229. These fees are comparable to those charged by other lawyers in my area. Fees may be higher in complex Chapter 7 cases. The costs, including court costs, for a Chapter 7 case range from $371 for an individual case to $399 for a joint case. This money is paid in addition to your attorney fee.
As an experienced bankruptcy lawyer practicing in both Birmingham and Tuscaloosa, I can explain all of your options to you. If I cannot help you I will tell you so. If you decide not to go forward with a plan to work out your debt, you don't owe me a dime.
How to Get Help and Get Out of Debt
When you are ready to get out from under your crushing debt, give Melinda Dionne a call.