08/26/2026
Often called "liquidation bankruptcy," Chapter 7 is a legal process designed to wipe out most unsecured debts (like credit cards, medical bills, and personal loans) so you can get a true financial fresh start.
How do you qualify?
- Pass the Means Test: Your average monthly household income over the last 6 months must be below your state's median income for your household size.
- Low Disposable Income: Examine your allowable expenses to see if you have enough disposable income to pay back creditors. If you don't, you can still qualify.
- Credit Counseling: You must complete an approved credit counseling course within 180 days before filing.
- No Recent Discharges: You haven't received a Chapter 7 discharge in the past 8 years (or Chapter 13 in the past 6 years).
Bankruptcy exists as a legal safety net, not a moral failure. If debt is overwhelming your income, consulting a qualified bankruptcy attorney in your state is the best first step to see if Chapter 7 is the right path.
Contact us today to see if Chapter 7 Bankruptcy is the right fit for you.
