Chapter 7 is known as Fresh Start bankruptcy.  It is used primarily by individuals who do not have significant assets, yet are burdened by excessive, unsecured debt.  Chapter 7 bankruptcy involved the filing of a bankruptcy petition.  The petition lists detailed information about the individual with particular detail as to the person’s assets and liabilities.  A typical Chapter 7 debtor receives a fresh start in that most of a person’s debts are easily eliminated.  There are however, exceptions to this general circumstance.  For example, a person may have secured debt (debt that is secured by some form of property such as a house, car, jewelry, furniture).  In those cases, the person must continue to pay the debt if he would like to retain the secured items.

Additionally, there are several debts that are not discharged or eliminated by filing Chapter 7 bankruptcy.  Those debts include, but are not limited to: student loans, recent taxes, alimony, maintenance or child support, parking tickets, debts incurred by fraud.

There are certain qualifications that must be met to be eligible to file a Chapter 7 bankruptcy.  Initially, the person must qualify by earning less than the state median for his or her household size or pass a means test.  Further, the person must have completed a pre-filing credit counseling session with an approved credit counseling provider.  The most recent year’s federal tax return must be provided as well as sixty (60) days worth of pay advises just prior to the case being filed.

To determine if you qualify, set an appointment with an experienced bankruptcy attorney.  If Chapter 7 bankruptcy filing is not an option, you may qualify for relief under a different chapter of the U.S. bankruptcy code.