When you file for Chapter 7 bankruptcy, the court places an automatic temporary stay on your current debts. This stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities.

What are the two types of Chapter 7 bankruptcy petitions?

The Four Bankruptcy Petition Types

• Voluntary Petition for Individuals Filing for Bankruptcy. This form is for individuals who are filing a case on their behalf.
• Voluntary Petition for Non-Individuals Filing for Bankruptcy.
• Involuntary Petition Against an Individual.
• Involuntary Petition Against a Non-Individual.

  What are the rules for Chapter 7 bankruptcy?

  If your income is below the median income for your state, you should qualify to file under the Chapter 7 bankruptcy rules. However, if your income is above the median income, the Chapter 7 bankruptcy rules state that you must complete the second section of the Means Test.

  Do you have to have a lawyer to file Chapter 7?

  There’s no rule that says you have to have a lawyer to file Chapter 7. There is a rule that says you have to use the official bankruptcy forms. You have to take credit counseling. You have to pass the Chapter 7 bankruptcy means test. Are the rules the same if I file Chapter 13 bankruptcy?

  Can a Chapter 7 case be converted to a Chapter 11 case?

  In order to accord the debtor complete relief, the Bankruptcy Code allows the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) as long as the debtor is eligible to be a debtor under the new chapter.

  Can a secured debt be discharged in Chapter 7 bankruptcy?

  Most people filing Chapter 7 bankruptcy don’t own any nonexempt property, so the trustee’s role is limited and their job is often done before a discharge of debts is granted. Secured debts are connected to a specific piece of property. Car loans are a common secured debt in Chapter 7 proceedings.