Chapter 7 Bankruptcy
Chapter 7 is the term used to describe a personal bankruptcy in which an individual’s assets are turned over to a trustee for a process known as liquidation, in which the assets will be sold to make payments to creditors for outstanding debts. However, since October 2005, those filing for Chapter 7 bankruptcy must now pass an income-based “means” test based on income in order to qualify. For those whose do not qualify for Chapter 7 bankruptcy, filing for Chapter 13 bankruptcy is an alternative to adjust outstanding debt.
Certain assets are considered exempt and are not subject to liquidation. When filing for Chapter 7 in Pennsylvania, you can choose between a state or federal exemption standard. Exemptions under these standards vary greatly, and knowing which standard to choose can be difficult. Let the attorneys of Calaiaro | Valencik help you understand your options when it comes to this critical decision.
In some cases, called no-asset cases, there are no non-exempt assets to be sold. For individuals that qualify, the outcome of a Chapter 7 bankruptcy proceeding is a discharge of outstanding debts. However, there are debts that are non-dischargeable under Chapter 7, including child support, alimony, taxes, most student loans, fines and fees from traffic violations, and more. Calaiaro | Valencik can help you to understand your financial future, and find the solution that works best for you.
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The bankruptcy attorneys of Calaiaro | Valencik have decades of experience handling Chapter 7 bankruptcy matters. To find out if we can help, please contact us at 412-232-0930.