Chapter 7

Chapter 7

Chapter 7 is the easier, quicker form of bankruptcy. As soon as you file a bankruptcy petition, all collections stop—that includes phone calls, garnishments, law suits, foreclosures, etc. If creditors receive anything in a Chapter 7, it’s from the liquidation of property. Most people do not lose any property in a Chapter 7 because it is exempt from collections. It is important to talk to an attorney about whether your property is exempt. If your household income is over the median income for the state of Washington, you may be required to file a Chapter 13 bankruptcy instead. Click here for a list of the median incomes, state by state, in the U.S.