White Law Firm, PLC


Chapter 7


A Chapter 7 bankruptcy proceeding is sometimes referred to as a "liquidation" or a "straight bankruptcy." Chapter 7 is the most common type of bankruptcy. Although it is called a "liquidation," it's relatively rare that any assets are sold. A large majority of people (roughly 90%) who file Chapter 7 bankruptcy are able to protect and keep all of their assets while ridding themselves of their debts.

Immediately upon filing bankruptcy, an automatic federal court order goes into effect that prevents your creditors from taking any collection action against you or your property. It is called the "automatic stay," and it is generally referred to as bankruptcy "protection." Creditors can no longer sue you, garnish your wages or bank accounts, repossess your vehicles, or even call you. 

Debts Extinguished in a Chapter 7 Include:

  • Credit Card Debt
  • Medical Bills
  • Payday Loans
  • Automobile or House Deficiency Balances
  • Legal Judgments
  • Personal Loans
  • Certain Tax Debts

Generally, most unsecured debts are eliminated or "discharged" in a Chapter 7 proceeding. 

In order to qualify for a Chapter 7 bankruptcy proceeding, you must meet certain income requirements. The Bankruptcy Code provides a somewhat complex formula to determine if you qualify for a Chapter 7 bankruptcy, called the "Means Test." In short, it measures whether you have the "means" to repay some or all of your debts. 

Contact us today to determine if a Chapter 7 bankruptcy proceeding is right for you. We will review your options with you and help you determine the best relief for your specific situation. Call (616) 920-1932 for a free consultation.




833 Kenmoor Ave. SE, Ste. E
Grand Rapids, MI 49546


(616) 920-1932


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