"Chapter 7 bankruptcy offers a fresh start. With Ronda Kennedy Law Firm, navigate it with confidence and rebuild your future."

Filing for Chapter 7 bankruptcy can be a significant step towards regaining control of your finances, but it’s essential to understand the process and its implications thoroughly. At Ronda Kennedy Law Firm, we are committed to guiding you through every aspect of Chapter 7 bankruptcy, ensuring that you make informed decisions about your financial future.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as liquidation bankruptcy, is a legal process that allows individuals to discharge most of their unsecured debts, such as credit card debt and medical bills. In exchange, the court may liquidate certain non-exempt assets to repay creditors. This type of bankruptcy is designed to provide a fresh start for individuals struggling with overwhelming debt.

Eligibility Requirements

To qualify for Chapter 7 bankruptcy, you must meet specific eligibility criteria:

1. Means Test: You must pass the means test, which compares your income to the median income in your state. If your income is below the median, you may qualify. If it’s above, additional calculations determine your eligibility.

2. Credit Counseling: You must complete a credit counseling course from an approved agency within 180 days before filing.

3. Previous Bankruptcy: If you have previously filed for bankruptcy, there are waiting periods to consider before you can file again.

The Filing Process

1. Consultation: Start by consulting with a bankruptcy attorney at Ronda Kennedy Law Firm to discuss your financial situation and determine if Chapter 7 is right for you.

2. Petition and Schedules: If you decide to proceed, your attorney will help you prepare and file the bankruptcy petition and required schedules, which include details about your income, expenses, assets, and debts.

3. Automatic Stay: Once you file, an automatic stay goes into effect, halting most collection actions, including lawsuits and garnishments.

4. Meeting of Creditors: You will attend a meeting of creditors, where the bankruptcy trustee and creditors can ask questions about your financial situation.

5. Asset Liquidation: The trustee will review your assets and determine which, if any, will be liquidated to repay creditors. However, many assets are exempt and protected.

6. Discharge: If everything goes smoothly, your debts will be discharged, meaning you are no longer legally obligated to repay them.

Pros and Cons of Chapter 7 Bankruptcy

Pros:

• Debt Relief: Discharges most unsecured debts, providing a fresh financial start.

• Quick Process: Typically resolves within a few months.

• Automatic Stay: Provides immediate relief from collection actions.

Cons:

• Asset Liquidation: Non-exempt assets may be sold to repay creditors.

• Credit Impact: Stays on your credit report for up to 10 years, which can affect your credit score.

• Eligibility Limits: Not everyone qualifies, and some debts, like student loans and child support, are not dischargeable.

How Ronda Kennedy Law Firm Can Help

Navigating Chapter 7 bankruptcy can be complex, but you don’t have to do it alone. At Ronda Kennedy Law Firm, we provide personalized guidance through every step of the bankruptcy process. Our team is dedicated to helping you understand your options, protect your rights, and achieve the best possible outcome.