Chapter 7 Bankruptcy FAQ

Chapter 7 bankruptcy is the chapter of bankruptcy that does what most people imagine filing bankruptcy will do. It is designed to wipe out most forms of debt and give you a fresh start. 

The catch in Chapter 7 is that a bankruptcy trustee can sell all of your non-exempt property to pay back creditors, but several people have little non-exempt property, so many people filing Chapter 7 keep most of their property. Make sure that you work with a  Billings bankruptcy attorney when you are examining Chapter 7 options.

Contact a Chapter 7 Bankruptcy Lawyer

If you are overwhelmed by debt in Montana and considering bankruptcy, you do not want to handle filing on your own. Scheveck & Salminen Law can walk you through the entire bankruptcy process and take the steps necessary to protect the property most important to you.

Our firm understands how stressful filing for bankruptcy can be, and we will work closely with you, so you do not feel alone at any stage. We invite you to call our firm at (406) 894-2121 or contact us online, so you can arrange a free consultation that can let us review your case.

Do I Have to Qualify for Chapter 7 Bankruptcy?

You find out whether you qualify for Chapter 7 bankruptcy by taking what is known as the bankruptcy means test. The means test determines if your income happens to be low enough for Chapter 7 bankruptcy, but failing the means test may mean that you instead have to repay a portion of what you owe through Chapter 13 bankruptcy.

Will Chapter 7 Bankruptcy Erase All of My Unsecured Debts?

Chapter 7 bankruptcy will wipe out most kinds of unsecured debt, which are debts that are not guaranteed by a collateral property. Secured debts refer to mortgages that are guaranteed by homes and automobile loans guaranteed by vehicles.

Other kinds of debts that might not be dischargeable can include child support and alimony, student loans, certain income taxes that are less than three years past due, recent debts for luxuries, and some court judgments. You may also be unable to discharge debt incurred by fraud, debt from willful or malicious injury to another party's property, debt from theft, breach of trust, embezzlement, or debt stemming from marital settlement agreements or divorce decrees.

Can I Keep My Home in a Chapter 7 Bankruptcy?

In Chapter 7 bankruptcy, you are allowed to keep certain property that is considered exempt. It is the non-exempt property that gets sold to pay off your creditors. 

Many people own only property that is exempt and are able to keep it all. In Montana, the homestead exemption allows you to exempt up to $250,000 of the equity in your home, and this doubles to $500,000 when you are a married couple filing for bankruptcy together.

Attorney for Chapter 7 Bankruptcy

Are you considering filing for Chapter 7 bankruptcy in Montana? You will want to make sure you are working with Scheveck & Salminen Law because we will be able to go over all of the unique circumstances of your case and help prepare you for any possible issues you may encounter.

Our firm knows that bankruptcy can be a positively draining process for most people, but we will support you throughout your entire process and make sure that everything is handled perfectly. You can call us at (406) 894-2121 or contact us online to set up a free consultation and get answers to all of your legal questions.