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FAQ: Filing for Chapter 7 Bankruptcy


Many of the people who visit our office stressed-out about their debts often see bankruptcy as a financial dead end. However, after we explain some of the benefits of filing for bankruptcy, these people see how this option can be used to secure a second chance and a new financial beginning. Below, we answer some of the common questions we hear from clients regarding the Chapter 7 bankruptcy process.

Question #1: Who can file for Chapter 7 bankruptcy?

A: Both individuals and businesses can file for Chapter 7 if they find themselves with more debts than they can keep up with. Debtors are not for a discharge under Chapter 7 if they have already received a discharge in a Chapter 7 case in the last eight years.

Question #2: What is Chapter 7 liquidation?

A: When you file for Chapter 7, you must relinquish your nonexempt property to a bankruptcy trustee. The trustee will then sell the property for cash to pay your creditors. You’ll receive a discharge after your creditors are repaired by the trustee and you complete a personal financial management course.

Question #3: Can I file for Chapter 7 jointly with my spouse?

A: The answer is yes. Spouses have the option to file a joint petition under a Chapter 7 bankruptcy. If a joint petition is filed, only one set of bankruptcy forms is needed and only one filing fee is charged.

Question #4: Can my employer fire me if I file for bankruptcy?

A: It is illegal for employers in both the private and federal sectors to discriminate against or fire employees because they filed for bankruptcy.

Question #5: Does bankruptcy stop wage garnishment?

A: Filing for Chapter 7 can stop wage garnishment. When you file a bankruptcy petition, a notice of an automatic stay will be issued to your creditors and your employer to cease wage garnishment. Additionally, creditors cannot initiate or continue lawsuits against you or contact you demanding payments as long as the automatic stay is in place.

Consult with a Talented & Knowledgeable Bankruptcy Lawyer Today

At Bridges, Jillisky, Weller & Gullifer, LLC, we believe people struggling with debt shouldn’t view bankruptcy as a dead-end, but as an opportunity to pursue financial freedom. Our team of seasoned legal professionals is committed to helping our clients navigate each phase of the bankruptcy process so they feel confident their best interests are protected. Our firm is AV-rated by Martindale-Hubbell® and backed by years of experience, so let us put our resources to work for you today.

Call (937) 403-9033 or contact us online to request your case consultation with our legal team.