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What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is commonly referred to as "straight bankruptcy" and is the most commonly filed form of bankruptcy. Only individuals, not businesses or partnerships, may obtain a discharge in a Chapter 7 proceeding. The filer for Chapter 7 bankruptcy typically includes large credit card debt and other unsecured bills coupled with few assets.

There are some guidelines as to who can file for Chapter 7 bankruptcy. You must reside or have a domicile, a place of business, or a property in the United States or a municipality. You must not have been granted a Chapter 7 discharge within the last six years or completed a Chapter 13 plan.

Additionally, you must not have had a bankruptcy filing dismissed for cause within the last 180 days. It must not be a "substantial abuse" of bankruptcy to grant the debtor relief. Generally, if after you pay the monthly expenses for necessities and there is not enough money to pay the remaining monthly debts, granting a discharge would not be considered an abuse of Chapter 7.

It would not be considered fundamentally unfair to grant the debtor relief under Chapter 7 or Chapter 13.

If you feel that Chapter 7 bankruptcy may be right for you, get in touch with Gary E. Hinck P.A. at our Topeka or Wichita locations. FREE initial consultations are available.