Chapter 7 Bankruptcy

Chapter 7 Bankruptcy gives you a fresh start by allowing you to discharge your unsecured debt (e.g. credit cards) and start over. It stops harassment from creditors, lawsuits, and any other attempt to collect from you. Most people are able to keep their home and personal property. The U.S. Bankruptcy Code provides liberal exemptions that protect your real and personal property from the reach of the bankruptcy process.

In order to qualify for Chapter 7 you must pass a means test. This test compares your annual household income to the median income of a household of your family’s size in Pennsylvania. The following is the current Pennsylvania median income. These amounts are adjusted periodically.

If your annual income is below the median income for your family size you initially qualify for Chapter 7. If your annual income exceeds that amount you must complete a form comparing your monthly income to expenses determined by local standards (published by the Internal Revenue Service). If you pass this portion of the means test you may qualify to file under Chapter 7. If you don’t pass you must file under Chapter 13.

Once you file under Chapter 7, a trustee is appointed by the court. The trustee reviews your case and conducts a meeting of creditors to discuss your debts, your assets and the reasons you filed. Traditionally, few creditors attend this meeting. Meanwhile, the trustee also reviews your case to determine if there are assets that could be sold and applied to toward payment owed your unsecured creditors.

For more detailed information on Chapter 7 please click visit this U.S. Courts page.


Located in Erie, Pennsylvania, The Law Offices of William T. Morton provide highly-focused legal assistance
and advice to meet the needs of businesses and individuals throughout Erie Country and it’s surrounding regions.

To schedule a consultation with Attorney William T. Morton regarding Chapter 7 Bankruptcy, please call (814) 520-8700.


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