Idaho Chapter 7 Bankruptcy Attorney

Understanding Chapter 7

Chapter 7 of the U.S. Bankruptcy Code involves the liquidation, or sale, of nonexempt assets that can be used to pay creditors a portion of debt they are owed. Also known as "straight bankruptcy," Chapter 7 cases nearly always results in the discharge of certain unsecured debts. This means that a bankruptcy court will release consumers from the legal obligation of paying debts such as credit card bills and medical bills. As there are several unique differences between Chapter 7 and Chapter 13 bankruptcy and because these proceedings can be fairly complex and full of unfamiliar technical information, it is best to work with experienced and attentive Idaho bankruptcy attorneys who can walk you through your Chapter 7 bankruptcy process.

Qualifying for Chapter 7 Bankruptcy

In recent years, the federal government has tightened the eligibility requirements for filing Chapter 7 bankruptcy. Under the Bankruptcy Abuse Prevention and Consumer Protect Act (BAPCPA), applicants must first take a means test to determine whether or not they qualify for Chapter 7. The means test will evaluate your financial information and compare your current monthly income to the median monthly income of the state of Idaho.

If you meet certain qualifying criteria, especially if your current monthly income is less than the median income, then you may be eligible to file under Chapter 7. If your monthly income is greater than the median income, you will have to complete additional steps of the means test to determine if you are eligible for Chapter 7, or if you must file under Chapter 13. An Idaho bankruptcy attorney from our firm can fully analyze your case to help you determine if you meet the criteria established by the means test.

How Chapter 7 Works

Chapter 7 proceedings will formally begin once you have submitted a petition with the bankruptcy court. Just as in Chapter 13 proceedings, the bankruptcy court will first issue an automatic stay, giving you protection from collection activities such as lawsuits, foreclosure proceedings, wage garnishments and debt collection phone calls. You will then be required to supply the court with information about your financial affairs, your debts, living expenses and your property.

A court appointed trustee will collect and liquidate your non-exempt assets, using the proceeds to distribute payments to your creditors. Most Chapter 7 cases are no asset cases, and you may not have sufficient assets or income to make any payments toward your unsecured debt. You will also be allowed to keep certain exempt property, including insurance policies, clothes, furniture and pension plans. The nature of your liquidation and exemptions will depend on your personal financial circumstances.

Ultimately, Chapter 7 bankruptcy is designed to allow consumers who have accumulated insurmountable debt to discharge certain unsecured debts. By doing so, you will be released from all liability of having to make payments on discharged debts. Roughly 99% of Chapter 7 cases result in the discharge of some unsecured debts, which can include credit card debt, medical bills, unsecured loans and others.

How Avery Law Can Help

Chapter 7 bankruptcy can be a healthy and advantageous legal action consumers can use to gain a financial fresh start. While it will not solve all of your financial problems, the benefits of bankruptcy can be precisely what you need. Knowing the importance of completing these procedures in a timely and competent manner, our Idaho bankruptcy attorneys work tirelessly to guide you through every step of the Chapter 7 bankruptcy process. From the moment you come to us in your time of need, you can receive the experienced assistance and genuine support you need to get through these difficult times. Contact Avery Law to learn more about how our firm can be of assistance. With offices in Boise, Idaho Falls, Pocatello and Twin Falls, we are prepared to assist clients throughout the Snake River Valley.