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Chapter 7 Bankruptcy
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Other Chapter 7 Pages View these pages for more information on Chapter 7.
"Means Test"
A Chapter 7 case filed by an individual debtor whose
debts are primarily consumer debts is subject to dismissal if the
court finds that granting relief would be an "abuse" of
the bankruptcy system,
Filing the Petition and Schedules In Chapter 7, the case begins when the debtor files a petition, accompanied by a schedule of assets and liabilities, statement of financial affairs, schedule of current income and expenditures, and list of unexpired leases and executory contracts. Debtors must provide the appointed trustee with a copy of his most recently filed income tax return, and in individual consumer cases, with a copy of pay-stubs for the preceding 60 days.
The Automatic Stay The filing of the petition operates to give the debtor the protection of the "automatic stay" of 11 U.S.C. Section 362(a), preventing creditors from attempting to recover most pre-petition debts, whether by collection action, lawsuits, wage garnishment or other judgment enforcement procedures. The stay also prevents creditors from taking property of or from the estate. There are several exceptions to the automatic stay, including police and regulatory actions and support claims. The stay is also subject to certain limitations where the debtor has previously filed bankruptcy. Credit Counseling Course Required
An individual debtor with primarily consumer
debts is also prohibited (with rare exception) from filing Chapter 7 or any
other bankruptcy petition if he has not received an approved credit counseling
course within 180 days prior to the filing. Repeat or Serial Filings
An individual debtor is prohibited from filing Chapter
7 or any other bankruptcy case, if during the preceding 180 days a
prior bankruptcy case was dismissed for failure of the debtor to comply
with court orders, or if the debtor obtained a dismissal of the case
after secured creditors filed relief from stay motions to foreclose
on their liens.
Written by Henry Rendler | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() - Bankruptcy Estate - Federal - Homestead - Planning ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |