Chapter 7 is designed to wipe out debts and is the easiest and shortest bankruptcy. It is designed to eliminate your debts while allowing you to keep your assets. There is an income test that determines if you are eligible to file a Chapter 7.
To qualify for a Chapter 7 bankruptcy, you must make less than your state's median income for a household of your family’s size. If your income exceeds the automatic number to qualify, we may still be able to file a Chapter 7 on your behalf. We complete a long-form Means Test and see if we can pull your income down in order for you to qualify.
If you qualify for a Chapter 7 bankruptcy, people wonder if they will be able to keep essential property like their home and car. If it appears your assets are too inviting and we believe the Chapter 7 Trustee would sell a vehicle or home, we will put you in Chapter 13 where you get to keep all of the property on your state's list of exempt property.
Once your bankruptcy is over, your dischargeable debt— credit card balances, medical bills, and personal loans — get wiped out. Generally, a Chapter 7 bankruptcy case takes about four months from start to finish.
Simply put, Chapter 7 bankruptcy is great because it is so short in duration. It works for individuals that do not have money at the end of the month — or non-exempt property.
If you’re considering filing for Chapter 7 bankruptcy in Missouri, contact the team at Adams Law Group.