Chapter 7 Bankruptcy

Learn the Facts

Could Chapter 7 be right for you?

Chapter 7 bankruptcy allows a filer to discharge – or eliminate – unsecured debt such as credit card debt, medical bills and deficiency balances due to auto repossession. In order to be eligible, individuals must pass a means test. This evaluation determines if you have enough money to make minimum payments to your creditors through a Chapter 13 payment plan. If you do not, you are eligible to file for Chapter 7.

In Chapter 7 you should receive a discharge of all dischargeable debts within four months to six months.


Non-dischargeable debts under Chapter 7 include:

  • Certain taxes and tax liens
  • Student loans
  • Alimony and child support (domestic support obligations)
  • Debts obtained through fraud, false pretenses or false representation
  • Debts you failed to schedule in time to allow creditors to file proofs of claim (unscheduled debts)
  • Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny
  • Debts for willful and malicious injury
  • Debts for fines or penalties to governmental units
  • Debts for judgments in wrongful death or personal injury lawsuits resulting from motor vehicle, vessel or aircraft accidents while you were intoxicated
  • Condominium or cooperative association fees or assessments after your bankruptcy case has been filed with the court

Chapter 7 for businesses

If your business is struggling financially and unable to pay your creditors, it may be time to consider filing for Chapter 7. Unlike Chapter 11 bankruptcy which allows you to reorganize your company’s debt, Chapter 7 stops the business’s operations immediately and involves the appointment of a trustee who examines the company’s finances. The trustee may decide to sell the assets and distribute the proceeds to the business’s creditors. Rather than receiving a discharge from debts, corporations and partnerships are dissolved.

Let Pinkston & Pinkston:

help you open a new financial chapter like we have been doing for over 25 years now.  A solution to your financial issues may be closer than you think. The seasoned Chapter 7 and Chapter 13 attorneys at Pinkston & Pinkston, P.A. in Jacksonville can help determine if bankruptcy is the right option for you or your business. Call us at (904) 389-5880 or contact us online to schedule your free consultation today.

Pinkston & Pinkston Bankruptcy Law Firm has over 20 years of experience to help you achieve a stress-life.

Let us help.

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