Chapter 7 is sometimes called a "Fresh Start" bankruptcy, because it eliminates (discharges) all debt that can be eliminated and allows the debtor to continue life with less debt burden. The debtor must be under a certain income limit to be eligible for a Chapter 7 bankruptcy, and cannot have received a Chapter 7 discharge within the last 8 years. It is a great option for people with primarily medical and credit card debt. A Chapter 7 bankruptcy lasts approximately three months from filing the petition to the discharge of debts.

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Biggest myth about Chapter 7: "I will lose my house and car if I file a Chapter 7 bankruptcy." In fact, it is exceedingly rare that an individual or family filing a Chapter 7 will lose any property. Your attorney will apply bankruptcy exemptions which are designed to protect your belongings. The rules are different for a business filing Chapter 7. 

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Districts where we practice bankruptcy:

• Western District of Washington

• Eastern District of Washington

• Western District of Texas

• Northern District of Ohio

• Eastern District of Michigan

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​Helpful Links:

• Current Median Family Income: https://www.justice.gov/ust/means-testing/20250515

• Bankruptcy Basics by the U.S. Courts: https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics