Chapter 7

Chapter 7 is a liquidation of unsecured debt including credit cards, medical debt, payday loans, qualified tax debt, deficiency balances on vehicles, leases, mortgages, and other secured loans.  You must list all your debt even if it cannot be eliminated (discharged).  When in doubt about the status of the debt include it, in other words, old debt that is charged off and has not been reported or a problem for several years should be included.  Your household income determines whether you qualify for a Chapter 7.  If your income is increasing while you are preparing to file your cause be aware that your delay in filing could result in your change of eligibility.  When in doubt, ask your attorney.