Chapter 7 Attorney: Your Guide to a Fresh Financial Start
Facing overwhelming debt can feel like drowning with no life raft in sight. If you're searching for a Chapter 7 attorney, you’re not alone—and you're in the right place. At Wilkie Puchi LLP, we help individuals navigate the legal and financial complexities of bankruptcy so they can find lasting relief and regain control of their lives. Read more to learn about Chapter 7, and when you are ready to take the next steps contact us to get started.
Understanding Chapter 7 Bankruptcy: A Guide to Debt Relief and Eligibility
Chapter 7 bankruptcy is one of the most widely used and effective forms of debt relief in the United States. It allows qualified individuals to eliminate most unsecured debts, such as credit card balances, medical bills, and personal loans. When you file, the court immediately issues an automatic stay of collection efforts by all creditors, which stops creditor harassment, wage garnishment, and foreclosure proceedings.
But how do you know if you qualify—and what does it take to get started? The process often begins with a means test, which determines your eligibility based on income and household size. If you're wondering how much you have to be in debt to file Chapter 7, the truth is there’s no minimum. It’s more about your inability to repay than the amount owed.
This guide will walk you through essential questions like: Does bankruptcy clear tax debt?, how to file for bankruptcy and keep your car, and how much does it cost to file for bankruptcy? Whether you're researching on behalf of a loved one or exploring your own options, our experienced Chapter 7 bankruptcy attorneys are here to help you understand your rights and plan your next steps.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” is a legal process designed to help individuals overwhelmed by debt eliminate most unsecured debts and get a financial reset. These debts typically include credit card balances, medical bills, payday loans, and other personal loans that aren't backed by collateral. For those struggling with bankruptcy for credit card debt, Chapter 7 can offer fast and powerful relief.
Once you file, the court puts in place an automatic stay, which immediately halts all collection efforts, including wage garnishments, foreclosure proceedings, and harassing calls from creditors. This protection gives you breathing room and allows your attorney to begin the process of managing your case.
A court-appointed trustee is assigned to your case and may sell non-exempt assets to repay creditors. However, many people are surprised to learn that they can keep most, if not all, of their property by using bankruptcy exemptions allowed under federal and state laws. These exemptions can apply to vehicles, household items, retirement accounts, and even home equity in some cases.
To determine eligibility, you’ll need to pass a means test, which analyzes your income and expenses to see if you qualify for Chapter 7. Many filers who wonder how much you have to be in debt to file Chapter 7 are relieved to learn that there’s no strict minimum—what matters is whether your debt is unmanageable and you're unable to repay it.
Once approved, your case proceeds fairly quickly. You’ll receive a Chapter 7 discharge within three to six months if granted by the bankruptcy court. This discharge permanently eliminates your eligible debts, freeing you from financial burdens that may have taken years to pay off. However, it’s important to understand that some non-dischargeable debts—such as recent tax liabilities, student loans, and child support—cannot be eliminated through Chapter 7. If you’re dealing with tax debt bankruptcy issues, consulting a knowledgeable law firm is critical to determine what can and can’t be discharged.
At Wilkie Puchi LLP, our experienced bankruptcy lawyers can help you understand your options, protect your assets, and guide you every step of the way. Whether you're researching how much Chapter 7 bankruptcy costs, want to know how to file Chapter 7 without an attorney, or simply need a plan to move forward, we’re here to help.
How Much Do You Have to Be in Debt to File Chapter 7?
There is no official minimum amount of debt required to file Chapter 7 bankruptcy. Instead, the focus is on your financial situation: whether you pass the means test, which compares your income to the median in your state. If your income is too high, the court may suggest Chapter 13 instead.
Filing makes sense when your unsecured debt (like credit cards or medical bills) far outweighs your ability to repay them. Whether it’s $10,000 or $100,000, the question is whether your debt is unmanageable—not how much it is.
Does Bankruptcy Clear Tax Debt and Other Obligations?
Some tax debt can be discharged in Chapter 7 bankruptcy, but not all. Generally, income tax debt may be dischargeable if:
The tax return was due at least three years ago
You filed the return at least two years ago
The IRS assessed the tax at least 240 days ago
You did not commit fraud or tax evasion
Other debts, like child support, alimony, student loans, and most recent taxes, are not dischargeable under Chapter 7.
How to File for Bankruptcy and Keep Your Car
Worried about losing your vehicle? Many people are—and rightfully so. The good news is that you can often keep your car if:
You’re current on payments
The equity in the car is below your state's exemption limit
You reaffirm the loan with the lender (agree to keep paying it)
In Arizona, bankruptcy exemptions can help protect a portion of your vehicle’s value. A knowledgeable Chapter 7 bankruptcy attorney can help you determine the best strategy for keeping your car.
How Much Does It Cost to File for Bankruptcy?
The Chapter 7 bankruptcy filing fee is currently $338 (subject to change), which goes to the court. You may also need to pay for mandatory credit counseling and debtor education courses—typically around $50–$100 total.
Legal fees vary depending on case complexity and location. Most Chapter 7 lawyers offer flat rates and may provide payment plans. At Wilkie Puchi LLP, we offer affordable, transparent pricing and will explain your costs up front.
Benefits of Hiring a Chapter 7 Bankruptcy Attorney
While you can file on your own, mistakes can be costly. Filing incorrectly may result in a dismissed case or even asset loss. Hiring a Chapter 7 bankruptcy attorney is critical to gain the following benefits:
Assessing whether Chapter 7 is the right choice
Guiding you through the means test
Identifying exemptions to protect your assets
Handling paperwork and court filings
Representing you in the 341 Meeting of Creditors
The U.S. Courts themselves advise against filing without an attorney due to the risk of irreversible mistakes.
Take the First Step Toward Debt Relief
Filing for Chapter 7 doesn’t mean failure—it means taking control of your future. At Wilkie Puchi LLP, we’ve helped countless clients discharge burdensome debt, stop collection harassment, and regain financial peace of mind.
If you’re feeling overwhelmed, behind on bills, or constantly dodging collection calls, it might be time to consider your legal options. A skilled Chapter 7 bankruptcy attorney can help you understand whether filing is the right step—and how to protect your income, assets, and peace of mind moving forward.
At Wilkie Puchi LLP, we’ve guided countless individuals through the Chapter 7 bankruptcy process, helping them eliminate unsecured debts, navigate the means test, and understand which debts qualify for a Chapter 7 discharge. Whether you’re trying to stop a wage garnishment, wondering how to file for bankruptcy and keep your car, or asking how much does it costs to file for bankruptcy, we’re here to provide clear answers and dependable legal support. You don’t have to go through bankruptcy alone. Call us at (480) 264-0709 or schedule a free consultation with our office today.
FAQs about Chapter 7 Bankruptcy
What debts are dischargeable in Chapter 7?
Most unsecured debts: credit card balances, medical bills, payday loans, old utility bills, and some tax debts. Student loans, child support, and recent taxes are usually not discharged.
Can I file Chapter 7 without an attorney?
Yes, but it’s not recommended. Filing incorrectly can lead to dismissal or asset loss. A lawyer ensures compliance and maximizes protection.
Will Chapter 7 ruin my credit forever?
No. While it stays on your credit report for 10 years, many filers begin rebuilding credit immediately and can qualify for loans within a few years.