Chapter 7 Bankruptcy: Well there are about 11 million pages on Google describing Chapter 7, so not a lot of explanation is needed.
Chapter 7 Bankruptcy Step by Step
First: Do you qualify, meaning:
- a) Is your gross monthly income below $3,997.00, for a single person in a one person household (If your income exceeds that amount by a little, you still might qualify).
- b) After you pay all of your living expenses, i.e., rent, gas, car insurance, food, utilities, clothes, etc., do you have $300 to $400 a month left over. If so, your paperwork may be reviewed by the court trustee to determine if you should file a bankruptcy (Chapter 13) where you pay back a portion of your debt.
Second: What is the value of your assets:
- Do you have assets with equity, i.e., do you have a house with more than $75,000 equity, or your personal property asset exceeds $21,000.00. Then you will want a bankruptcy attorney to evaluate your case for you.
Third: If the first 2 steps do not apply to you, then you probably qualify for a Chapter 7, a fresh start for an honest debtor.
You will be able to eliminate your unsecured debt, i.e., credit cards, medical bills, etc.