Chapter 7 Bankruptcy

Start Fresh with Chapter 7

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What is Chapter 7 Bankruptcy?

The purpose of a Chapter 7 bankruptcy is for a person to discharge their debts. It’s a legal process by which the honest debtor, in the unfortunate situation where they cannot pay their debts with their current income in any reasonable amount of time, is allowed to avoid personal liability. It allows the Debtor to move on with their lives. Commonly known as a “liquidation,” the idea is that a debtor’s non-exempt property is sold and distributed amongst your creditors in exchange for that discharge. However, in most situations, the Debtor is able to claim exemptions that protect their property. For example, with Idaho exemptions, you can claim up to $175,000 each (or $350,000 combined for a married couple) in the equity in a home that you own. Or $10,000 per vehicle per Debtor.

  • Who is Chapter 7 For?
  • If you don’t make enough money to pay your debt in any reasonable amount of time.
  • If you’re getting garnished.
  • If you’re considering debt consolidation or debt settlement.
  • If you’re paying your debt, but cannot make ends meet without continuing to use credit cards.

What Are the Advantages?

A fresh start! Chapter 7 bankruptcy allows you to move on with your life and leave your debt behind. A person should be able to meet their monthly living expenses with their monthly income, and bankruptcy removes debt that impedes you from living your life.

Process / Next Steps

The next step is to schedule a meeting with our attorney, Chris Williams. He reviews your situation to determine:

  1. Whether you qualify for bankruptcy.
  2. Whether bankruptcy makes sense.
  3. What the cost for bankruptcy would be.

Our free consultations are scheduled for up to an hour, but typically average between 20 and 40 minutes depending on the complexity of your matter.

If you’re eligible and it makes sense, then you can retain with our office with a deposit. It’s helpful to have your ID and social security card at your first meeting, although it’s not required.

Frequently Asked Questions

What does Chapter 7 Bankruptcy cost?

As of 2025, the costs are as follows: 1) the court filing fee is $338, 2) our office requires a credit report of $37 for an individual, or $60 for a married couple, and 3) attorney’s fees. Our attorney’s fees vary depending on the complexity of a matter. Less complex matters are more affordable than complex matters that include things like businesses, substantial property, or active divorces.

Will the Trustee sell my house, my car, or my other personal property?

Most Chapter 7 bankruptcy cases do not have any property that is sold. Whether property is protected or not depends on the exemptions you’re able to claim. With Idaho exemptions, you can typically protect up to $175,000 ($350,000 for married couples) in your home, $10,000 per Debtor per vehicle, and we have miscellaneous exemptions for your household goods, jewelry, and even animals you own. If you do have property that would be subject to liquidation in a Chapter 7, our attorney would advise you on your alternative options, including a Chapter 13 bankruptcy.

How does a Chapter 7 Bankruptcy affect my credit?

We cannot accurately predict credit, and our office cannot guarantee your credit standing after filing. That being said, when you file, your open accounts are updated to be closed accounts, which is the first step of rebuilding your credit. A bankruptcy is added to your credit report. Once you get your discharge, the discharge is then reported on your credit report for ten years.

What debts are included in a bankruptcy?

Most debts are dischargeable in a bankruptcy. Debt you owe on credit cards, medical debt, and loans are the most common debt to be discharged. Debts excluded from discharge include student loans, child support and taxes. Additionally, if you want to retain property you own debt on, like a vehicle or a house, you must continue paying that debt regardless of the bankruptcy.