Chapter 7 Bankruptcy Lawyer Kansas City MO

Bankruptcy Lawyer

Chapter 7 bankruptcy is the process of liquidating debtor’s non-exempt assets for the purpose of selling them and for the proceeds to be distributed to the creditors according to their order of priority. This process gets rid of the debtor’s debt and helps him have a fresh start. The number one downside for this process is that the debtor loses property and gets a lower credit score.


The test for determining eligibility for chapter 7 bankruptcy is called the “means test”. In this test, the average income of the debtor is compared to the state’s median income. If the debtor’s average is less than or equal to that of the state’s, then the debtor qualifies. Also, those who have already received a bankruptcy discharge 6 to eight years prior to another filing will not be eligible for filing chapter 7 bankruptcy.


  1.  Filing a Petition. All facts required must be stated therein, including a list of creditors, source, frequency and amount of monthly income, a list of all the debtors’ property, monthly living expenses.
  2. 2.       Ceasing of Collection Efforts. Once a chapter 7 bankruptcy has been filed, creditors are prohibited from making further collections against the debtor.
  3. 3.       Appointment of Trustee. The trustee is the one who will be in charge of your case. He will be the one managing your property and supervise the selling and distribution of proceeds.

An important thing to remember about chapter 7 bankruptcy is that those properties which are labelled as protected are not included in the liquidation and selling process. If you want to know more about chapter 7 bankruptcy or are planning to file one, feel free to contact or visit Paulus Law Firm.