{"id":36205,"date":"2021-10-06T09:00:00","date_gmt":"2021-10-06T16:00:00","guid":{"rendered":"https:\/\/pdxlegal.com\/?p=36205"},"modified":"2021-10-13T10:47:52","modified_gmt":"2021-10-13T17:47:52","slug":"how-to-qualify-and-file-for-chapter-7","status":"publish","type":"post","link":"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/","title":{"rendered":"How to Qualify and File for Chapter 7"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"A_Brief_Overview_of_Chapter_7_Bankruptcy\"><\/span><strong>A Brief Overview of Chapter 7 <\/strong><strong>Bankruptcy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6629d9adcf023\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6629d9adcf023\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#A_Brief_Overview_of_Chapter_7_Bankruptcy\" title=\"A Brief Overview of Chapter 7 Bankruptcy\">A Brief Overview of Chapter 7 Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#In-depth_Understanding_of_Chapter_7\" title=\"In-depth Understanding of Chapter 7\">In-depth Understanding of Chapter 7<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#Do_you_need_to_owe_a_certain_total_debt_to_qualify_for_Chapter_7_Bankruptcy\" title=\"Do you need to owe a certain total debt to qualify for Chapter 7 Bankruptcy?\">Do you need to owe a certain total debt to qualify for Chapter 7 Bankruptcy?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#Process_of_Filing_for_Chapter_7_Bankruptcy\" title=\"Process of Filing for Chapter 7 Bankruptcy\">Process of Filing for Chapter 7 Bankruptcy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#Get_a_local_attorney_who_provides_bankruptcy_services_in_your_state\" title=\"Get a local attorney who provides bankruptcy services in your state.\u00a0\">Get a local attorney who provides bankruptcy services in your state.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#Take_the_two-part_means_test\" title=\"Take the two-part means test.\u00a0\">Take the two-part means test.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#File_your_bankruptcy_forms\" title=\"File your bankruptcy forms.\">File your bankruptcy forms.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#Get_a_reaffirmation_agreement_for_your_secured_debts\" title=\"Get a reaffirmation agreement for your secured debts.\u00a0\">Get a reaffirmation agreement for your secured debts.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#File_for_bankruptcy_exemptions\" title=\"File for bankruptcy exemptions.\u00a0\">File for bankruptcy exemptions.\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#What_Happens_When_You_File_for_Chapter_7\" title=\"What Happens When You File for Chapter 7?\">What Happens When You File for Chapter 7?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/pdxlegal.com\/how-to-qualify-and-file-for-chapter-7\/#Get_Through_the_Whole_Proceedings_with_Legal_Help\" title=\"Get Through the Whole Proceedings with Legal Help.\">Get Through the Whole Proceedings with Legal Help.<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-36209\" title=\"Chapter 7 Bankruptcy Attorney\" src=\"https:\/\/pdxlegal.com\/wp-content\/uploads\/2021\/10\/Chapter-7-Bankruptcy-Attorney.webp\" alt=\"Chapter 7 Bankruptcy Attorney\" width=\"700\" height=\"467\" srcset=\"https:\/\/pdxlegal.com\/wp-content\/uploads\/2021\/10\/Chapter-7-Bankruptcy-Attorney.webp 1024w, https:\/\/pdxlegal.com\/wp-content\/uploads\/2021\/10\/Chapter-7-Bankruptcy-Attorney-300x200.webp 300w, https:\/\/pdxlegal.com\/wp-content\/uploads\/2021\/10\/Chapter-7-Bankruptcy-Attorney-768x512.webp 768w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Bankruptcy is a <a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\">legal proceeding filed by a person or business struggling with debt<\/a> and unable to settle monthly payments to their lenders.\u00a0 It offers the debtors to start fresh by forgiving their debts while also protecting creditor rights and help them obtain repayment through liquidation of assets.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The different types of bankruptcy are called bankruptcy chapters, and each chapter has its own benefits and drawbacks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among all the bankruptcy chapters, the most common is Chapter 7 since it has a quick turnaround time, is easy to understand, and frees you up from most of your liabilities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"In-depth_Understanding_of_Chapter_7\"><\/span><strong>In-depth Understanding of Chapter 7<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the United States bankruptcy code, Chapter 7 controls <\/span><a href=\"https:\/\/pdxlegal.com\/chapter-7\/\"><span style=\"font-weight: 400;\">the process to liquidate your assets to pay off what is owed to your creditors.<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_you_need_to_owe_a_certain_total_debt_to_qualify_for_Chapter_7_Bankruptcy\"><\/span><em><b>Do you need to owe a certain total debt to qualify for Chapter 7 Bankruptcy?<\/b><\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There is no threshold for you to be <a href=\"https:\/\/pdxlegal.com\/qualifying-for-bankruptcy-in-portland\/\">deemed eligible for Chapter 7<\/a>, but only certain debts will be discharged after a successful bankruptcy case is filed. These debts are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mortgage loans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Car loans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit card debts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/pdxlegal.com\/forgiving-medical-debt-need\/\">Medical debts<\/a> (from large medical bills)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Past-due utility bills<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personal or payday loans<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax liens (in some states)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once these debts are discharged, the debtors are released from any personal liability for payment, and the creditor can no longer reach out for debt repayment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, any existing government debts, unpaid alimony and child support, income taxes, and student loans will not be discharged.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Process_of_Filing_for_Chapter_7_Bankruptcy\"><\/span><strong>Process of Filing for Chapter 7 Bankruptcy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You need to complete a series of steps before your bankruptcy petition is approved.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Get_a_local_attorney_who_provides_bankruptcy_services_in_your_state\"><\/span><b>Get a <\/b><b>local attorney who provides bankruptcy services<\/b><b> in your state.\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After you have decided that you want to <a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\">file for bankruptcy<\/a> to wipe out your debts, better seek legal help from a competent bankruptcy attorney so that you won\u2019t have to worry about learning the bankruptcy laws. Your bankruptcy lawyer will guide you through the whole bankruptcy process.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Take_the_two-part_means_test\"><\/span><b>Take the two-part means test.\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This test determines your paying capability. The means test evaluates whether your total monthly income is higher or lower than the median income. The <a href=\"https:\/\/www.ord.uscourts.gov\/index.php\/court-info\/contact-us\/portland-division\/38-court-information\/contact-us\/related-agencies-and-courts\/115-us-bankruptcy-court\" target=\"_blank\" rel=\"noopener\">bankruptcy court<\/a> will deduct your living expenses and allowances from your income to see if you have enough disposable income left to pay off debt collectors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take up and complete a credit-counseling course with a nonprofit credit counseling agency.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"File_your_bankruptcy_forms\"><\/span><b>File your bankruptcy forms.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">File bankruptcy forms with the legal aid of your bankruptcy attorney, detailing your debts, income, properties, creditors, and other financial transactions incurred in the past two years. Ensure that you have included\u00a0 your petition to the court to begin the Chapter 7 bankruptcy process officially.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Attend meetings scheduled by the <a href=\"https:\/\/pdxlegal.com\/what-is-a-chapter-7-Trustee\/\">court-appointed United States bankruptcy trustee<\/a>. During these meetings, you and your legal team will meet with creditors and the legal trustee to ask you questions. The legal trustee is an unbiased party who oversees the entire bankruptcy case, reviews your assets, and determines which of your assets can be liquidated for your debts to be wiped out.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Get_a_reaffirmation_agreement_for_your_secured_debts\"><\/span><b>Get a reaffirmation agreement for your secured debts.\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Examples of secured debts are mortgages and car loans. The creditor can <a href=\"https:\/\/pdxlegal.com\/foreclosure-defense\/\">foreclose your property<\/a> or seize the collateral property when you default a loan, but when you file for bankruptcy, the trustee will ask you whether you want to reaffirm your debt. Reaffirmation allows you to continue paying the lender per the original terms both parties have agreed to.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"File_for_bankruptcy_exemptions\"><\/span><b>File for bankruptcy exemptions.\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not all of your properties need to be liquidated in a bankruptcy proceeding. You can file to <a href=\"https:\/\/pdxlegal.com\/asset-protection\/\">exempt an asset<\/a> since you can keep a certain amount of your total assets. For filing, please check the bankruptcy exemption laws of your state, as this can vary.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Happens_When_You_File_for_Chapter_7\"><\/span><strong>What Happens When You File for Chapter 7?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When the court has deemed you eligible for filing chapter 7 bankruptcy, and you have filed the forms and paid the fees, the court will immediately <a href=\"https:\/\/pdxlegal.com\/bankruptcy\/automatic-stay\/\">issue an automatic stay<\/a>. An automatic stay is some sort of bankruptcy protection that protects you from creditor harassment, property foreclosures, repossession, and <a href=\"https:\/\/pdxlegal.com\/consumer-protection\/protect-wages-from-garnishment\/\">wage garnishments<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once your qualified debts are discharged, you will be given a fresh start and have a second chance to rebuild your credit score since the filing will significantly affect your credit.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Get_Through_the_Whole_Proceedings_with_Legal_Help\"><\/span><strong>Get Through the Whole Proceedings with Legal Help.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you are hesitant to ask for help from a qualified bankruptcy attorney from an <\/span><a href=\"https:\/\/pdxlegal.com\/contact\/\"><span style=\"font-weight: 400;\">esteemed bankruptcy law firm in Portland, Oregon<\/span><\/a><span style=\"font-weight: 400;\"> due to the attorney fees, get a free case evaluation first. You can get a quote and free legal advice to help you decide whether declaring bankruptcy is the answer to your debt problems.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Brief Overview of Chapter 7 Bankruptcy Bankruptcy is a legal proceeding filed by a person or business struggling with debt and unable to settle monthly payments to their lenders.\u00a0 It offers the debtors to start fresh by forgiving their debts while also protecting creditor rights and help them obtain repayment through liquidation of assets. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":36209,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5],"tags":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36205"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=36205"}],"version-history":[{"count":0,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36205\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/36209"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=36205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=36205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/tags?post=36205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}