Practice Areas

Chapter 7

At O'Hara, Taylor, Sloan & Cassidy, our bankruptcy attorneys are experienced in helping our clients navigate through the bankruptcy world, including Chapter 7. A Chapter 7 Bankruptcy is often referred to as a complete or total bankruptcy.  Under a Chapter 7, a debtor can eliminate all of their debt, with a few exceptions.  The most common of these exceptions are student loans, child support, spousal support, property settlement debt from a divorce.  In a Chapter 7, the client also has the option of keeping their secured debts, as long as they are current on their payments and don't exceed the maximum amount of equity allowed in each asset.  In order to file a Chapter 7, an individual with primarily consumer debts must pass the means test.  The means test consists of two parts:  the first part compares the individual's last six months of household income to the state median income for their family size; the second part deducts IRS allowable expenses for some categories of expenses and the amount of expense expected going forward for other categories.  If an individual is under the median income for their family size, they do not have to proceed to the second part of the test.  If an individual is over the median income, then the test is whether they have $167.00 a month, as measured by the second part of the test, to pay to their unsecured creditors.  If they have $167.00 a month or more to pay to their unsecured creditors, they do not pass the means test and must file either a Chapter 13 or Chapter 11 Bankruptcy.  

For more information and to learn what our experienced attorneys can do for you, contact us today.

 

 

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.