The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

Chapter 7 Bankruptcy Explained

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Bankruptcy
Reading Time: 1 min read
Bankruptcy
26
SHARES
436
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Chapter 7, also known as “liquidation” or “straight liquidation,” is typically the simplest and fastest form of bankruptcy.

Individuals, married couples and businesses can use chapter 7 bankruptcy protection to wipe out all unsecured debts, completing eliminating financial obligations such as:

  • * credit card debt
  • * medical bills
  • * collection accounts
  • * civil judgments
  • * back rent
  • * overdue utilities
  • * payday loans
  • * various personal/consumer loans

However, filing Chapter 7 bankruptcy will not eliminate some debts. These include: most back taxes, student loans, as well as court-ordered alimony and child support.

Ever since bankruptcy reform legislation passed in 2005, individuals have had to go through credit counseling, and pass an “income test” and a “means test” in order to qualify for Chapter 7.

If you do not meet the qualifications for Chapter 7, you will be shifted from Chapter 7 into Chapter 13 bankruptcy for a five-year repayment.

Lawyers also often advise people trying to prevent foreclosure and individuals who have secured assets that they want to keep (like a home, car or boat) to file Chapter 13 bankruptcy, instead of Chapter 7.

Tags: Chapter 7
Previous Post

How Your 401(k) Plan Is Costing You Money

Next Post

How a Credit Card Balance Transfer Can Improve Your Credit Score

Related Posts

50 cent

Rapper 50 Cent and Bankruptcy: Myth Vs. Fact in This Money & Media Mirage

by Lynnette Khalfani-Cox, The Money Coach

Social media and the mainstream press have been buzzing recently about rapper 50 Cent and his Chapter 11 bankruptcy filing. If you’ve read any of the news coverage, or followed the stream of mostly snarky comments on Twitter or Facebook, you might be inclined to believe any of the following...

Video: How Your Bankruptcy Will Impact Your Future Spouse’s Credit

by Lynnette Khalfani-Cox, The Money Coach

A subscriber to AskTheMoneyCoach.com is getting married, but recently filed for bankruptcy. The person wants to know how her bankruptcy will impact her future spouse's credit report. According to recent data from the American Bankruptcy Institute, there were 1.2 million personal bankruptcy filings in the United States in 2012. If it’s...

5 Things to Do Before You Go Into Foreclosure

by Lynnette Khalfani-Cox, The Money Coach

 If you’re having trouble keeping up with your mortgage payments and think you might be headed for foreclosure, there are still some things you can do to ameliorate the situation. Millions of U.S. homeowners have had their properties repossessed in recent years, so if you’re on the verge of losing...

AskTheMoneyCoach.com bankruptcy

Can I Change My Mind After Paying for a Bankruptcy Filing?

by Lynnette Khalfani-Cox, The Money Coach

Sometimes, people who intend to file for bankruptcy protection have a change of heart once it’s done, or once they pay to have a bankruptcy initiated. According to a bankruptcy attorney, different procedures apply once the bankruptcy has been filed with a court, as opposed to when you have only...

bankruptcy

5 Reasons People File for Bankruptcy

by Lynnette Khalfani-Cox, The Money Coach

 According to recent data from the American Bankruptcy Institute, there were 1.2 million personal bankruptcy filings in the United States in 2012. If it’s increasingly difficult for you to cover all your bills, you find yourself using credit cards to pay for basic necessities, or you’re currently considering any type of debt...

cost to file for bankruptcy AskTheMoneyCoach.com

How Much Does it Cost to File for Bankruptcy Protection?

by Lynnette Khalfani-Cox, The Money Coach

 Approximately 1.2 million Americans filed for bankruptcy in 2012 and more than 1 million more individuals are expected to go bankrupt in 2013. Continued layoffs, foreclosures, rising healthcare costs and mounting credit-card debts are all still taking a toll on many people. If you’ve thought about filing for Chapter 7...

truth bankruptcy AskTheMoneyCoach.com

The Truth About Bankruptcy: It’s All Here – The Good and Bad

by Lynnette Khalfani-Cox, The Money Coach

Bankruptcy isn't a step that should be taken lightly. But sometimes, it's a necessity that simply can't be avoided. If you're overwhelmed by enormous credit card debts you can never repay, struggling with massive medical bills, or are barely staying afloat due to unemployment, bankruptcy may be a good alternative...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1526 shares
    Share 610 Tweet 382
  • What to Do if Your Spouse Stole Money From You

    1309 shares
    Share 524 Tweet 327
  • What to Do If You Can’t Afford to Leave Your Spouse

    1273 shares
    Share 509 Tweet 318
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1129 shares
    Share 451 Tweet 282
  • What Do All Those Strange Codes In My Credit Report Mean?

    899 shares
    Share 360 Tweet 225
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    866 shares
    Share 346 Tweet 217
  • Do This Now If Your Wages Were Not Reported

    853 shares
    Share 341 Tweet 213

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist