A Discharge Under A Chapter 7 Bankruptcy Releases An Individual Debtor From Personal Liability For Most Debts And Stops The Creditors Owed Those Debts From Taking Any Collection Actions Against The Debtor. Chapter 7 Bankruptcy Discharge Is Subject To Many Exceptions; However, And Debtors Should Consult Competent Legal Counsel Before Filing To Discuss The Full Scope Of Rights And Options With Respect To Filing Bankruptcy. Generally, Individual Debtors Receive A Discharge In More Than 99% Of Chapter 7 Cases.
In Most Cases, Unless A Creditor, Or Other Interested Party, Files A Objection, And Barring Any Other Delays In Process, The Bankruptcy Court Will Issue A Discharge Order And Close The Bankruptcy Case Within Approximately 6 Months Of The Date Of Filing. Where A Debtor Is Represented By An Attorney, Other Than The Chapter 7 Filing Appointment, The Debtor Will Generally Only Be Responsible For Attending On Required Meeting Of The Creditors- Date And Time Are Assigned Immediately After The Bankruptcy Case Is Filed.
Chapter 7 Does Not Impose A Maximum Debt Limit. Consequently, You Can Discharge Any Amount Of Debt. Further, It Is A Liquidation Of Debt; Unlike A Chapter 13, You Do Not Need To Make Any Payment Or Create A Payment Plan. Chapter 7 Bankruptcies Are Also Shorter Proceedings Than Chapter 13, Usually Lasting No More Than 6 Months, As Opposed To 3 To 5 Years In A Chapter 13. Filing A Chapter 7 Petition Automatically Stops Most Collection Actions Pending Against The Debtor/petitioner: This Includes Wage Garnishments, Collection Law Suits, Foreclosures, And Even Calls From Bill Collectors.
A Chapter 7 Discharge Can Eliminate All A Petitioner?s Debts. In Order To Qualify For A Chapter 7 Discharge, However, The Debtor Will Need To Satisfy A Means Test- One Of The Criteria To Qualify For A Chapter 7 Discharge Is The Debtor?s Household Income Cannot Exceed A Certain Sum, Subject To Certain Exclusions. Debtors Should Consult With An Attorney To Determine Whether They Satisfy The Means Test, And Whether Chapter 7 Is Their Best Choice.
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