Chapter 7

What is Chapter 7 bankruptcy?

Individuals who need assistance minimizing debt can file a bankruptcy petition with the Bankruptcy Court. Once this occurs, a temporary hold occurs, called an automatic stay. This stops creditors from calling you, garnishing wages, or filing judgements against you.  Once your case is complete, you will receive a discharge order, which will release you from your debts.  This means you will not need to repay them.

Your can often keep your assets

Under federal and state law, specific exemptions provide individuals with protection for their assets.  Delaware law is generous on what it allows you to keep even through bankruptcy.  These are some of the exemptions you may qualify for:  

  • Homes:  Up to $125,000 worth of equity (un-mortgaged value)
  • Vehicles:  Up to S15,000 worth of equity per person filing
  • Pensions:  Almost all pension funds are protected from creditors
  • Personal exemptions:  Up to $25,000 pre person filing in personal property (bank accounts, household goods, furnishings, and jewelry)

You could get rid of all of your debt, or some of it

The goal of bankruptcy is to provide you with a fresh start. Have you ever wondered, "How do I claim Bankruptcy?" That's why many consider Personal Bankruptcy as an option to overwhelming debts. However, some types of debts cannot be discharged. This includes: 

Child support obligations

Income taxes owed for the three years prior

Most student loans

Criminal fines However, other debts, including credit card debt, payday loans, deficiency claims from car repossession or home foreclosure, judgment debts, and other types of debts can be discharged.  

Have you ever wondered, "If there was only a Bankruptcy Attorney near me?"  Doreen is located on Lawyer's Row in Wilmington if you want to visit in person, or contact us to schedule a free phone consultation. 

Do you qualify for Chapter 7 bankruptcy?

Individuals and business entities can file for Chapter 7 bankruptcy. Most individuals will qualify to file. When you come in to speak to our experienced attorney, we'll help you to know if you qualify. Some people may not qualify if they've filed bankruptcy previously and it has not been long enough between filings. In other cases, you may not qualify for Chapter 7 if you fail the Means Test. This is a screening that determines if your income is in-line with federal law requirements for filing. 


The Law Offices of Holfeld and Becker is a debt relief law firm as defined by 11 U.S.C. Section 528. We help people file for bankruptcy relief under the Bankruptcy Code. The information contained on this website is not to be construed as legal advice. It is not intended to solicit or form an attorney-client relationship. Prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for information purposes only.