How Much Cash Can You Keep When Filing Chapter 7 Bankruptcy?
If bankruptcy is on your mind, then you're likely also wondering how much cash can you keep when filing chapter 7 bankruptcy? And you might also be curious about other bankruptcy programs. How do you know which is best for you? Is bankruptcy even a valid option?
No one ever really sets out to file for bankruptcy. But bankruptcy services exist for a reason. Every year, thousands of Americans find themselves in financial crisis' needing a solution. And for many of them, chapter 7 bankruptcy is the ideal way back to monetary stability, in part because you're allowed to keep some of your money. But how much cash can you keep when filing chapter 7 bankruptcy?
We'll help you explore the gritty, complex guidelines for the various bankruptcy programs out there. And when you hear how much cash you can keep when filing chapter 7, your only remaining question might be, how do I get started? As it turns out, DoNotPay has the quick and simplified answer to that question, too.
What Is Bankruptcy and Who Is It Intended to Help?
Before we get into how much cash you can keep when filing chapter 7, it's best to understand the basics. Bankruptcy often carries with it a negative connotation. But it's a series of programs developed by the government to help consumers find financial relief in extreme debt scenarios. Bankruptcy allows people to experience a fresh start. And filing involves a bankruptcy court, bound by the US Bankruptcy Code.
Understanding the Different Types of Bankruptcy
Not all bankruptcies are created equal, specifically to address the various financial challenges people face. Here are the various types of bankruptcy programs and their basic guidelines. You'll need to understand these to know how much cash you can keep when filing chapter 7 bankruptcy.
|Chapter 7 Bankruptcy||The absolute most common form of bankruptcy-based debt relief is intended to help individuals who are unable to pay back their debts. In these scenarios, debts are discharged entirely.|
|Chapter 9 Bankruptcy||Designed and structured to offer debt relief solutions to municipalities, including cities, school districts, and taxing districts.|
|Chapter 11 Bankruptcy||Reserved for business entities, this type of bankruptcy allows companies to reorganize assets and debts.|
|Chapter 12 Bankruptcy||This variety of bankruptcy is intended to help those within the farming and fishing industries, specifically.|
|Chapter 13 Bankruptcy||Permits individuals to restructure their debts in a way that provides manageable payback solutions. In these scenarios, unsecured debts can be discharged, while secured debts are paid back.|
|Chapter 15 Bankruptcy||This bankruptcy type provides assistance to those parties from more than one country.|
If you're not sure which bankruptcy program is best for your financial situation, you can always consult with a bankruptcy attorney who can help plan for the best long-term solutions.
How Much Cash Can You Keep When You File for Chapter 7 Bankruptcy?
When filing for Chapter 7 bankruptcy, you intend to liquidate your assets and walk away from all debts. And typically, this means everything you own is up for grabs, including cars, real estate, and bank accounts. But there are situations that can allow you to keep cash when filing for Chapter 7 bankruptcy.
Under bankruptcy laws, you could qualify for asset exemptions. This means you don't have to give up everything you own, including any cash reserves you have set aside. Some of these assets might include:
- Motor vehicles within a particular value range
- Jewelry possessions, up to a certain value
- Reasonably necessary household items, including appliances
- Reasonably necessary clothing and living essentials
- Portions of equity in your home
- Pension plans
- Cash reserves up to a specific limit
How to File for Chapter 7 Bankruptcy
If you want to know how much cash you can keep when filing chapter 7 bankruptcy, you first need to go through the ridiculously complicated process of filing. And there are certain timelines and regulations that apply, depending on your exemptions and document submissions. Here are a few bankruptcy filing key points to know:
- Use the forms within the 100 series when filing as an individual or married couple.
- You cannot file chapter 7 if, within the previous 180 days, you've had a bankruptcy petition dismissed, you've failed to appear, or you voluntarily dismissed the case after creditors came forward with liens.
- You will have to provide a complete list of all creditors, the amounts owed, and the nature of the claims.
- You will have to provide the details regarding your sources of income, including frequency and amounts.
- You will have to provide a complete list of all individual properties.
- You will also have to create a detailed list of your living expenses, including housing, food, utilities, transportation, taxes, health-related, etc.
- Courts will charge a case filing fee of $245, a $75 miscellaneous admin fee, and a $15 trustee charge. You'll have to pay these fees when you file.
What to Do If You Can't File for Chapter 7 on Your Own
There are so many complex layers to properly filing bankruptcy. And missing a step at all can impact how much cash you can keep when filing chapter 7 bankruptcy, specifically. There are some free information resources available to help answer any questions you might have as you collect and prepare your documents. But most will still advise that you work with an attorney to be sure you execute your steps, which can be really costly. And if you're considering bankruptcy, money isn't just growing on trees.
What you really need is a better way to handle this confusing and complicated bankruptcy filing process. And DoNotPay has just the solution. Not only can our product assist with every proper filing step, but we can verify how much cash you can keep when filing chapter 7 bankruptcy. From petition filing to available exemptions, DoNotPay can help!
How DoNotPay Makes Filing Chapter 7 Bankruptcy a Breeze
Start your bankruptcy filing and discover how much cash you can keep when filing chapter 7 bankruptcy with DoNotPay.
If you want to file bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps:
- Search for File for Bankruptcy on DoNotPay.
- Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.
- Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.
And that's it! Once done, the court will give you:
- Your bankruptcy case number
- The name of your bankruptcy trustee
- The date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!
Why the DoNotPay Way to Financial Relief Is the Best Way
You're already stressed about finances and bankruptcy next steps. DoNotPay is the best way to find financial relief without the additional hassles because it's:
- Fast—You don't have to spend hours trying to figure out how to file chapter 7.
- Easy—You don't have to struggle to fill out tedious forms or keep track of all the steps involved in filing your petition and following up within given timelines.
- Successful—You can rest assured knowing we'll make the best case for you and communicate determinations every step of the way!
DoNotPay Can Help with Filing Chapter 7 and So Much More
DoNotPay's File for Bankruptcy product is designed to help anyone, anywhere, with filing. You might be wondering how much cash you can keep when filing chapter 7 bankruptcy. But we can also help with other bankruptcy types, regardless of your financial position. Whether you're filing for bankruptcy relief in California or Montana, we have you covered!
What Other Nightmare Tasks Can DoNotPay Help You Handle?
You'll think the DoNotPay way to file chapter 7 bankruptcy is so easy, you'll likely wonder what other nightmarish tasks we can help you tackle. Check out some of our other revolutionary, virtual solutions for everyday problems like:
- Dealing with breach of contract issues
- Canceling unwanted subscriptions
- Getting refunds and handling chargebacks
- Power of attorney duties
- Find missing cash
- Initiate an inflation pay request
If you're facing a bankruptcy decision, consider filing chapter 7. And if you want to know how much cash you can keep when filing chapter 7, let DoNotPay help you get the answers!