Frequently Asked Questions

All debts of any kind or amount, including out-of-state debts are dischargeable in a Chapter 7 bankruptcy case excluding debts that are by law nondischargeable (meaning, cannot be wiped out). The following is a list of the usual types of debts that are not dischargeable in a Chapter 7 bankruptcy case:

1. Most tax debts that were incurred to pay nondischargeable federal tax debts.
2. Debts for obtaining money, property, services or credit by means of false pretenses, fraud or a false financial statement, if the creditor files a complaint in the bankruptcy case.
3. Debts not listed on the debtor’s Chapter 7 forms, except if the creditor knew of the bankruptcy case in time to file a claim.
4. Debts for fraud, embezzlement, or larceny, if the creditor files a complaint in the bankruptcy case.
5. Debts for domestic support obligations, which include debts for alimony, maintenance, or support, child support arrearages, and certain other divorce-related debts, including property settlement debts.
6. Debts for the deliberate or malicious injury to the person or property of another, if the creditor files a complaint in the bankruptcy case.
7. Debts for certain types of fines or penalties.
8. Debts for most educational benefits and student loans, unless the court finds that not discharging the debt would impose an undue hardship on the debtor or his or her dependents.
9. Debts for personal injury or death caused by the debtor’s operation of a motor vehicle, vessel or aircraft while intoxicated.

Debts that were or could have been listed in a previous bankruptcy case of the debtor in which the debtor did not receive a full discharge.

Yes. An individual is not allowed to file a Chapter 7 case unless he or she has, during the 180 days prior to filing, received from an approved nonprofit budget and credit counseling agency an individual or group briefing that outlined the opportunities for available credit counseling and assisted the person in performing a budget analysis. This briefing may be conducted by telephone or on the internet and must be paid for by the person. When the chapter 7 case is filed, a certificate from the agency defining the services provided to the person must be filed in the court. A copy of any debt repayment plan made for the individual by the agency must also be filed.

Currently, the filing fee is $335 for either a single or a joint (Husband and Wife) Chapter 7 case. The filing fee for a Chapter 13 case is $310. The fee is paid when the case is filed.

A Chapter 7 bankruptcy case is filed in the office of the clerk of the bankruptcy court in the district where the debtor has lived or maintained a principal place of business for the greater portion of the last 180 days.

The filing will usually worsen the score, if that is possible. However, some financial institutions frequently solicit business from persons who have recently filed under Chapter 7, because it will be at least 8 years before they can file another Chapter 7 case.

Usually not in most cases. Certain property is exempt and may not be taken by creditors unless it is encumbered by a valid mortgage or lien. A person is usually allowed to retain his or her unemcumbered exempt property in a Chapter 7 case. A person may also be permitted to retain encumbered exempt property. Encumbered property is property against which a creditor has a lawful lien, mortgage or other security interest.

The first appearance in court is for a hearing known as the “meeting of creditors,” which is usually held about a month or so after the bankruptcy case is filed. The person filing the case must being a photo ID, his or her social security card, his or her most recent pay stub and all of his or her bank and investment account statements to the hearing. At this meeting of the creditors, the person is put under oath and examined about his or her debts, assets, expenses and income by the court hearing officer or bankruptcy trustee. In most Chapter 7 consumer cases, no creditors appear in court for the meeting; however, any creditor that does appear is usually allowed to question the person. For most persons, this will be the sole court appearance, but if the bankruptcy court decides not to grant the person a discharge or if the person wishes to reaffirm a debt, there may be another hearing about three to four months later, which the person will need to attend.

After the meeting of the creditors, the bankruptcy trustee may contact the person filing regarding his or her property and the bankruptcy court may issue certain orders to the person. These court orders are sent by mail and may require the person to turn certain property over to the trustee, or provide the trustee with specific information. If the person fails to comply with these orders, the case may be dismissed, in which his or her debts will not be discharged. The person must also attend and complete an instructional course on personal financial management and file a statement with the court showing completion of the course.

The bankruptcy trustee is appointed by the United States Trustee to examine the person who filed the case, collect the person’s nonexempt property and pay the expenses of the bankruptcy estate and the claims of the creditors. Further, the trustee has certain administrative duties in a Chapter 7 case, even if the person filing has no nonexempt property.

1. Analyze the amount and nature of the debts owed by our client and determine the best remedy for our client’s financial problems.
2. Advise our client of the relief available under Chapter 7 and the other chapters of U.S. Bankruptcy Law, and the advisability of proceeding under each chapter.
3. Assist our clients in obtaining the required prebankruptcy budget and credit counseling briefing.
4. Assemble the information and data necessary to prepare the Chapter 7 forms for filing.
5. Prepare the petitions, schedules, statements and other Chapter 7 forms for filing in court.
6. Help our client in arranging his or her assets so as to enable the person to retain as many of the assets as possible after the conclusion of the Chapter 7 case.
7. Filing the Chapter 7 petitions, schedules, statements and other forms with the bankruptcy court, and, if required, notifying certain creditors of the commencement of the case.
8. If necessary, assisting our client in reaffirming certain debts, redeeming personal property, setting aside mortgages or liens against exempt property, and otherwise carrying out the matters set forth in the statement of intention.
9. Attending the meeting of the creditors with our client and appearing with our client at ay other hearings that may be set in the case.
10. Assist our client in attending and completing the necessary instructional course on personal finance management.
11. If necessary, preparing and filing amended schedules, statements and other documents with the bankruptcy court in order to protect the rights of our client.