What is Chapter 7 Bankruptcy? The Chapter 7 Bankruptcy is the liquidation of all your debts without the necessity of having to make payments on a monthly basis. Your case is filed and completed in approximately ninety days. Chapter 7 is filed when there is no money leftover to pay creditors like your credit cards each month. You may file for Chapter 7 bankruptcy every eight years, measured from the date of the earlier bankruptcy filing. Therefore, if you filed on August 1, 2000, you will not be able to file again until August 2, 2008.
Under The Bankruptcy Reform and Consumer Protection Act of 2005-what we will simply refer to it as the “new law”, you must pass the “means test” in order to qualify for Chapter 7 bankruptcy.