Chapter 7 Bankruptcy

Understanding Chapter 7 Bankruptcy


Chapter 7 Bankruptcy, often referred to as liquidation bankruptcy, is available to both individuals and businesses struggling with unmanageable debt. Eligibility is determined through the means test, which compares your income to the median income for a household of your size in your state. If your income is below the median, you may qualify for Chapter 7.


The Chapter 7 process involves filing a petition with the bankruptcy court, along with detailed documentation of your debts, assets, income, and expenses. Upon filing, an automatic stay is placed on your debts, halting collections and lawsuits. A bankruptcy trustee is appointed to oversee your case, sell non-exempt assets, and distribute the proceeds to creditors.


Filing for Chapter 7 can discharge most of your unsecured debts, such as credit card debt and medical bills. However, it may lead to the loss of some assets, and not all debts, like student loans and child support, can be discharged. The bankruptcy will remain on your credit report for ten years, potentially affecting your ability to obtain credit.

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Greensburg Office

206 N. Main St.

Greensburg, PA 15601

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45 E. Main St.

Suite 400 Uniontown Pa, 15401


*Cities also include: Uniontown, Connellsville, Brownsville, Masontown, Mt. Pleasant, Scottsdale, Latrobe, Murrysville, Irwin, Ligonier, Hempfield, Desmond, New Stanton.
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