Chapter 7


In Chapter 7, you are required to fully disclose your assets and liabilities to the Bankruptcy Court. Your assets, minus certain exemptions, go into the bankruptcy estate, which are then liquidated to pay your debts. The remaining balances owed are then discharged.

Many of our clients do not lose their assets in bankruptcy, because certain types of assets can be claimed as exempt. Click here to see a partial list of the most popular bankruptcy exemptions.

As soon as you file for bankruptcy, the law requires that all collection activity must stop, including harassing calls, letters, and lawsuits.

Contact us online or by phone at 303-415-9688 to speak with an experienced attorney if you are considering filing Chapter 7 bankruptcy.

Chapter 7 Means Test: The most important fact to know about the Chapter 7 Means Test, which became a part of the Bankruptcy Code in 2005, is that not everyone is subject to it. Debtors whose financial problems were primarily caused by the failure of a business, rather than consumer borrowings can file bankruptcy regardless of income.

If your debts are primarily consumer rather than business debts, and your household income exceeds the 50th percentile according to IRS guidelines, you will be subject to the Means Test. Higher income debtors who have enough qualifying expenses can pass the Means Test and still file for Chapter 7. Our qualified bankruptcy attorneys will help you determine whether you are eligible for Chapter 7 bankruptcy or whether you should consider other debt relief options. 

Click here for an Interactive Means Test, which may assist you in determining whether you qualify to file Chapter 7 Bankruptcy. As you will see if you work on a Means Test calculator, the formula is lengthy and complex. If you are an above-median income consumer debtor, you should consult a bankruptcy lawyer to determine your eligibility to file.

As of April 1, 2020 median figures for debtors living in the State of Colorado are as follows: 1 Earner: $61,921. 2 People: $81,155. 3 People: $94,193. 4 People: $107,867. $9,000 may be added for each person in excess of 4,