Filing for Chapter 7 Bankruptcy
Specific Information for Filing Chapter 7 Bankruptcy under the new US Bankruptcy Laws...
Although there has been much speculation as to the challenges of filing for chapter 7 bankruptcy under the new laws governing the process, it actaully easier than you may think. Sure, there are more hoops to jump through under the new laws and it's also true that some people are going to have to file Chapter 13 instead of Chapter 7.
For the vast majority of Americans that will be filing for Chapter 7 Bankruptcy, the process is still available and very straight forward.
Proprietary research has shown that due to incomes being below state medians for their household, more than 85% of current Chapter 7 debtors will not have to complete the full means test and will be able to file for Chapter 7 Bankruptcy. There is another means test to be conducted which will allow most of the remaining 15% to also file under Chapter 7.
Research was done by Best Case Solutions, Inc., on 11,013 consumer cases filed in 44 states and DC June 15 – July 6, 2005, with the Best Case OneTouch™ Electronic Filing System. Data examined was from filed cases only, and thus public record.
New US Bankruptcy Law will not bring about a dramatic decline in the proportion of bankruptcy cases filed under Chapter 7. CRS Report for Congress Order Code RS22058, Updated April 21, 2005.
Requirements Specific to Chapter 7 Filing
- When filing Chapter 7 bankruptcy, under new bankruptcy provision contained within the Bankruptcy Abuse Prevention, Consumer Protection Act signed by President Bush on April 20, 2005, you will be required to take an approved Credit Counseling Course before filing. This can be set up on your own or by you bankruptcy lawyer. In some cases the credit counseling course can be taken over the Internet.
- An approved Financial Management Course will have to be completed before you can be discharged. This too can be set up by your bankruptcy lawyer.
Free Chapter 7 Bankruptcy Forms
You can get official Federal Bankruptcy Forms from us for free. Browse the complete list of free current forms including local forms. You need acrobat reader to view and print these free bankruptcy forms. There are Chapter 7 specific Banruptcy Forms are available here.
Chapter 7 Bankruptcy Means Test
You may not know for sure if you will you pass the first stage of the means test required to pursue filing Chapter 7 bankruptcy in the United States. If this is the case, simply follow the link below to check if your income is below the median income for your state. If it is, then you can file Chapter 7.
Go to State Median Incomes to find out.
If you fail the first stage of the chapter 7 bankruptcy means test (your income is not below the median income for your state), you still may pass the second stage of the means test and be allowed to file Chapter 7. If your income is slightly over the state's median income, you may still be able to file Chapter 7. Your bankruptcy lawyer will be able to make this calculation and also advise you on allowable expenses you can use when doing the calculation.
Filing Chapter 7 Online
Chapter 7 in the bankruptcy code is simply the liquidation of most debts. The only debts you cannot liquidate are student loans (unless they are over 7 years), government taxes of any kind, and child support (alimony). You must be prepared to pay these debts regardless of your filing for chapter 7 bankruptcy.
Chapter 7 is in fact the most common form of consumer bankruptcy. Because chapter 7 is so common, there have come to be websites promoting the Filing of Chapter 7 Bankrupty Online.
These online bankruptcy filing kits allow you to file for Chapter 7 Bankruptcy in the Federal Bankruptcy Court in your area, from anywhere in the United States. If you have come to the conclusion that filing for bankruptcy is the only way out, these kits claim to save you time and money. They includes all the necessary forms and presumably, complete instructions on low to complete a chapter 7 bankruptcy proceeding without an attorney.
In addition to the cost of these kit, you will need to pay the Bankruptcy Court Filing Fees.
In our experience, filing for bankruptcy online is probably not the best approach. Bankruptcy code and bankruptcy law can be intricate and complex, and there is no substitute for a good Bankruptcy Attorney when filing for Chapter 7 Bankruptcy in the United States.
