Even if you make too much money to pass the Chapter 7 means test automatically, you might still be able to qualify for Chapter 7 bankruptcy. The two-part means test allows you to deduct certain expenses in full to reduce your disposable income.

Most Chapter 7 bankruptcy filers can keep a home if they’re current on their mortgage payments and they don’t have much equity. However, it’s likely that a debtor will lose the home in a Chapter 7 bankruptcy if there’s significant equity that the trustee can use to pay creditors.

If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you’re current on your loan payments. They may also give you the option to pay off the equity at a discount in order to keep the car.

Chapter 13 Eligibility Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $394,725 and secured debts are less than $1,184,200.

Chapter 7 bankruptcy can wipe out many forms of overwhelming debt under the protection of a federal court. You may have to give up some assets, like an expensive car or jewelry, but the vast majority of filers do not. Chapter 7 bankruptcy is the fastest and most common form of bankruptcy.

10 years

In many cases, Chapter 7 bankruptcy is a better fit than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three- to five-year Chapter 13 repayment plan.

Yes, you can apply for credit cards after going through bankruptcy, although it may be difficult to qualify for the kind of credit cards you want. Chapter 7 bankruptcies are normally discharged quickly, around three months after they were filed.

A bankruptcy public record will have an impact on your credit scores as long as it appears on your credit report, even after it has been discharged. In a Chapter 7 bankruptcy, also known as a liquidation bankruptcy, there is no repayment of debt.

Although bankruptcy will still show up on your credit that long, the “weight” of the penalty decreases over time. What’s more, you can offset the damage of that penalty by taking certain actions now. So, buying a car after bankruptcy is possible, even within six months of your final discharge date.