Chapter 7 Bankruptcy
Home / Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a liquidation bankruptcy. In order to qualify for a Chapter 7 bankruptcy, a debtor’s income must be under a certain threshold. If the debtor’s income is under that threshold, they can file a Chapter 7 bankruptcy. Once a Chapter 7 bankruptcy is filed, the debtor receives his or her discharge typically within 3 to 4 months from the filing date. Any debt that is dischargeable in bankruptcy is discharged in that 3 to 4 months’ window. The debtor is then debt free, and can begin to reestablish their credit as soon as their discharge is received.
To see if you qualify for a Chapter 7 bankruptcy, call the Law Offices of Adam Rieth to schedule your free consultation.
Chapter 7
Bankruptcy
Homestead
Exemption
The most common question in a Chapter 7 bankruptcy is what is the homestead exemption currently? Right now, the homestead exemption is $400,000 of equity in a single residential home. This means that a debtor filing for bankruptcy can keep his or her house if the equity in the house is $400,000 or less. This is a large increase from the prior homestead exemption that was only $150,000 of equity. The homestead exemption in Arizona is constantly changing, particularly over the last couple years.