Chapter 7 bankruptcy is also known as “liquidation” or “straight bankruptcy,” and it is, generally speaking, the simplest and quickest form of filing. With Chapter 7, your assets will be sold, your creditors will be paid, and you can receive a clean slate financially. In East Cobb Chapter 7 can be filed by an individual, a married couple, a corporation, or a partnership. Since 2005, means testing and mandatory credit counseling have been required in order to be eligible for an East Cobb Chapter 7, under federal bankruptcy reform laws. Means testing compares your income and expenses to other individuals or families in your state. If you earn less than the median income of a similarly-sized family in your state, then Chapter 7 is a good option for you; if you earn more, you may need to consider Chapter 13. If the means test indicates that you don’t meet the standards for Chapter 7 but you decide to file for it anyway, the court may convert your case to a Chapter 13 filing or dismiss it outright. Working with an East Cobb Chapter 7 bankruptcy lawyer can help you demonstrate any special circumstances that would justify a Chapter 7 filing even if you fail to qualify based on your income and means test results.
Bankruptcy reform law also mandates credit counseling for filers. Within the six months prior to filing, you must meet with an approved credit counselor for a 90-minute session. You must also complete money management classes before the court will discharge your debts. An East Cobb Chapter 7 bankruptcy lawyer can help you navigate these requirements and answer all of your questions.