Chapter 7 bankruptcy is the type of filing that comes to mind for most people. A chapter 7 bankruptcy provides for the “liquidation” of a debtor’s property and the fair distribution of remaining proceeds to a filer’s creditors.

Many changes have been made in regards to eligibility requirements for chapter 7 bankruptcy recently. Credit counseling is now a mandatory requirement for all chapter 7 bankruptcy filers and under certain circumstances, you may not be able to file for a chapter 7 bankruptcy if you recently dismissed another bankruptcy case or failed to appear in court during a bankruptcy filing.

While chapter 7 allows for the liquidation of almost all debts there is no guarantee that all of your outstanding debts will be liquidated. Moreover, creditors have an opportunity to voice their opinions in court as well.

While guidelines for filing chapter 7 bankruptcies have become a bit stricter, many clients are still able to qualify.

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