Chapter 7 is the most common and easiest type of bankruptcy. It is known as liquidation bankruptcy and it discharges all your unsecured debt such as Credit card debt, medical bills, and Personal loans. However, you need to qualify first and meet three things. Find a chapter 7 lawyer for that.

1.Gross Income
To qualify for Chapter 7 bankruptcy, your household gross income over a six-month period. If your income is less than the state median, you will automatically pass.

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How this works. The means test assumes that low-income debtors are unable to repay creditors and, as a result, are not abusing the system by filing for Chapter 7 bankruptcy.

2.Dispoble Income
After deducting allowable bankruptcy expenses from your monthly gross income, your discretionary income is the amount that remains. This amount will determine whether you qualify for a Chapter 7 or Chapter 13 bankruptcy discharge (wipe out).

3.Expensive Assets
Secured debt payment is one in which the creditor has the right to reclaim collateral (such as a car or house) if you do not make your payment. Even if your mortgage or car payment exceeds national or local living standards, you can usually deduct it entirely on the means test. So, if you plan to pay off your car or mortgage in less than 60 months, you can only deduct the 60-month average, not your entire current monthly payment. Chapter 7 Lawyers can help you navigate the murky law side.

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