Practice Areas

Chapter 7 Bankruptcy FAQs

Bankruptcy and Chapter 7

• Can I convert a case from a Chapter 13 to a Chapter 7?
• How will filing Chapter 7 affect my credit?
• What is a Chapter 7 Trustee and what role do they play in the process?
• What are the fees to file for Chapter 7?
• Will I have to attend a court hearing if I file for Chapter 7 or Chapter 13 bankruptcy?
• What is a re-affirmation agreement and do I have to sign it?
• Can I file bankruptcy and still keep my home?

Choosing Between Chapter 7 and Chapter 13

• What is the difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy?
• What is the difference between a Chapter 13 discharge and a Chapter 7 discharge?

Bankruptcy and Chapter 7

Q: Can I convert a case from a Chapter 13 to a Chapter 7?
A: Yes, if you qualify and it make sense based on your case status and circumstances. » Back to top

Q: How will filing Chapter 7 affect my credit?
A: Chapter 7 wipes your credit clean. After you receive your discharge, you have to build your credit again, just like you did when you first started out. » Back to top

Q: What is a Chapter 7 Trustee and what role do they play in the process?
A: The Trustee is appointed by the court to administer the case. They are required to liquate any nonexempt property and provide dividends to the creditors. » Back to top

Q: What are the fees to file for Chapter 7?
A: The court-filing fee is $299.00. You are also required to complete credit counseling before filing that typically requires a $30.00 - $50.00 fee (see above Q& A for further details). We would assess your circumstances and quote you our Attorneys fees at the time of your initial complimentary consultation. » Back to top

Q: Will I have to attend a court hearing if I file for Chapter 7 bankruptcy?
A: Yes, in the case of Chapter 7, typically only one hearing is required - the Section 341 First Meeting of Creditors. The hearing will be conducted within a month or so of filing. As your counsel, we would be at the hearing(s) to advocate for you and advise you on the steps necessary to complete the hearings. » Back to top

Q: What is a re-affirmation agreement and do I have to sign it?
A: If you are filing a Chapter 7 bankruptcy, a re-affirmation is guarantees to a secured creditor to you intend to pay the debt in full. The agreement is drafted by your creditor and presented to us as your Attorney. We advise clients on a case-by-case basis on whether it makes sense to execute a re-affirmation agreement(s) based on their budget and the nature of the debt. » Back to top

Q: Can I file bankruptcy and still keep my home?
A: That depends-but in the majority of cases the answer is yes. If you are current on your mortgage payments and your home is not worth substantially more than what you owe on your mortgage, you can normally file a Chapter 7 Bankruptcy and keep your home. If you have over a certain amount of equity (which means that your home is worth much more than the balance of your mortgage(s)) or are behind in your mortgage payments, filing a Chapter 7 isn't the right option. If you are behind on your mortgage, you may be able keep your home by filing a Chapter 13 Bankruptcy, which allows you to resume monthly mortgage payments and pay the missed payments over time. » Back to top

Choosing Between Chapter 7 Fresh Start and Chapter 13 Reorganization Plan

Q: What is the difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy?
A: A Chapter 7 Bankruptcy is a fresh start in which all or most of your debts are discharged. A Chapter 7 applies when your monthly income only meets your basic living expenses (i.e. mortgage payments, food, clothing, utilities, etc.). A Chapter 13 will help you if you are behind on your mortgage or car payment but you have some disposable income to pay your creditors. A Chapter 13 (wage earner's plan) requires you to make monthly payments to the Bankruptcy Court, allowing you to resume your monthly mortgage payments while paying the missed payments over time. You are not required to all debts in full. » Back to top

Q: What is the difference between a Chapter 13 discharge and a Chapter 7 discharge?
A: A Chapter 13 discharge is provided at the completion of the terms of an approved plan. A full Chapter 13 discharge is broader and completes more debts than a discharge that is received at the completion of a Chapter 7 case. » Back to top

Contact Us

At Acclaim Legal Services, our bankruptcy lawyers will review your financial affairs and advise you on whether Chapter 7 or Chapter 13 bankruptcy is an option for you. Contact Acclaim Legal Services today. Your initial consultation with a bankruptcy attorney is free. Call 866-261-8282

Acclaim Legal Services is a debt relief agency serving people in Wayne, Oakland, Macomb, Livingston, St. Clair, Genesee, Jackson County, Lenawee County, Monroe County, Sanilac County, Lapeer County, Shiawassee Countyand Washtenaw Counties including Detroit, Livonia, Flint, Southfield, Pontiac, Mt. Clemens, Warren, Royal Oak, West Bloomfield, Troy, Ann Arbor, Dearborn, Sterling Heights, Ypsilanti, and Farmington Hills. We help people file for bankruptcy relief under the Bankruptcy Code.