Chapter 7

Please view our Understanding Bankruptcy Video in English below. https://www.youtube.com/watch?v=fJqjqNfpVQo

Please view our Understanding Bankruptcy Videos in Spanish (Espanol) below.   https://www.youtube.com/watch?v=iW98zHdtYEQ

This brochure details what to expect during a chapter 7 or chapter 13 bankruptcy case. 

Be forewarned, the following journey through chapter 7 bankruptcy law is a bit technical, so if you are considering filing for chapter 7 bankruptcy, consult a bankruptcy attorney. For more information, visit:  http://www.natlbankruptcy.com/how-chapter-7-bankruptcy-works/  or

Much has been written about the now infamous means test; Congress’ answer to the credit card lobby’s complaints that too many Americans who could afford to pay back some of their debts were allowed to file for chapter 7 bankruptcy. The means test effectively tries to divert some consumers with “above average” income into a chapter 13 repayment plan. To be sure, the means test is a complicated labrynth, best navigated with the help of a good bankruptcy attorney, however, in this post, we’ll try to take some of the mystery out of the process...

Chapter 7 is the chapter of the Bankruptcy Code providing for "liquidation," ( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)...

Once a bankruptcy case is filed, a trustee is selected to administer the debtor’s estate. One of the options available to a bankruptcy trustee is the authority to set aside or “avoid” transfers of a debtor’s assets that the trustee determines unfairly placed the asset beyond the reach of creditors. Transferring an asset to a third-party for the purpose of hiding it from creditors constitutes a “fraudulent conveyance.”...

It is not unusual for debtors, specifically married debtors who file for bankruptcy protection separately, to co-own property. If you co-own property and intend to file for bankruptcy, you need to be aware that the trustee has the authority to force a sale of the entire asset including the co-owner(s) interest...

It is not wise to try to keep a credit card when you file for bankruptcy , and always, always tell your attorney about all of your debt, including all of your credit cards...

Student loans are difficult, but not impossible, to discharge in bankruptcy.  To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”