Do I make too much money to file for Chapter 7 bankruptcy?
Eligibility for Chapter 7 depends on whether your income is below the median income for your state and family size. A chart of income based on family size can be found at www.usdoj.gov/ust under the heading Means Testing Information. If you are below the median income, you are eligible to file a Chapter 7 case. If you are above the median income, eligibility can only be determined after completion of the Means Test.

How is eligibility determined under the means test?
All household income (from both spouses, if applicable) received in the 6 months prior to filing is used to calculate an average monthly income. This figure is multiplied by 12 to determine an annualized income.

Will I lose my home, car or other property if I file a Chapter 7?
In most cases, NO.

Will the Chapter 7 Trustee sell my property?
Property is only at risk of being sold if there is non-exempt value and the asset in excess of secured debt.

Can income taxes being discharged in Chapter 7?
Yes, but there are specific requirements that must be met.

Who is notified about my Chapter 7?
All creditors that are listed in your bankruptcy documents will receive a notice from the United States Bankruptcy Court regarding the filing of your case.

How long does a bankruptcy stay on my credit record?
The filing of a bankruptcy remains on your credit report for up to 10 years.

How many times do I have to appear in court?
In most bankruptcy cases, individuals are NEVER required to go to court. Rather, individuals are required to attend a meeting to answer questions and confirm the accuracy of all the information contained within the documents filed with the court.

Will I have to see or meet with my creditors?
Probably not. All debtors are required to attend a meeting of creditors at which any creditor can appear. However, most creditors do not attend this meeting.

Can I pay my Chapter 13 plan payment directly myself or does my employer have to deduct my Chapter 13 plan payments from my paycheck?
The option of whether to pay the Chapter 13 payments directly to the Trustee or to have the payment deducted from your paycheck is left to the debtor.

How long does it take for my debts to be wiped out in Chapter 7?
It takes approximately 120 days to receive a Discharge Order. The Discharge Order eliminates the unsecured debt. However, the automatic stay that goes into effect immediately upon the filing of your case stops all creditors from contacting and harassing you.

I am married. Will my spouse have to file bankruptcy too?
There is no requirement that both spouses file bankruptcy. If all of the debt is solely in one person's name, only that person needs to file bankruptcy. Be advised, however, that even if only one spouse files bankruptcy, the income of both spouses will be considered to determine eligibility for filing.

How often can I file bankruptcy?
Individuals are eligible to receive a Chapter 7 discharge every 8 years. Individuals are eligible to receive a Chapter 13 discharge provided they have not previously received a discharge in either a Chapter 7 or Chapter 13 case in the previous 4 years or 2 years respectively.