Chapter 7 bankruptcy is another type of bankrupty, one in which most debts are discharged outright without making monthly payments through the Bankruptcy Court. While Chapter 7 is a tool available to most individuals, it does not address several different types of debt. A Chapter 7 will not discharge certain debts including the following:
Domestic support obligations (e.x. child support, alimony, spousal support)
Taxes owed (generally those incurred within the last three tax years)
Debts arising from fraud, criminal charges, fines and penalties imposed
by a court
With Chapter 7, most people get to exempt, or keep, all of their property. While bankruptcy law allows only a certain amount of property to be exempt, for most people this does not present a problem. However, when you first meet with the Elmer Law Firm, an experienced attorney will explain how your property would be impacted in a Chapter 7 bankruptcy.
For many people, the most worrying aspect of Chapter 7 is whether they qualify or not. In 2005, Congress passed an Amendment to the Bankruptcy Code by adding a 'means test.' In order to file a Chapter 7, you must fall under the median household income for the State of Alabama. For those whose income is above the median but filing a Chapter 7 would be the most beneficial, call to schedule a free consultation with the Elmer Law Firm to further look into your financial situation to determine whether you qualify.