Qualify for a Chapter 7 Using the “Business Debt Exception”

Chapter 7 bankruptcy is a powerful tool, one that can help you get out of debt quickly so that you can start to rebuild your financial foundation.  However, many are told that they don’t qualify for a chapter 7 and this is normally because they make too much money.  I am here to tell you that just because you make decent money doesn’t mean you don’t qualify for a chapter 7.  In addition to the numerous avenues our firm can use to qualify for the chapter 7 under the means test, there is a commonly overlooked “loophole” called the “Business Debt Exception”.

This exception is designed to allow people who make decent money to still qualify for a chapter 7 as long as the majority of their debts stemmed from business debt or “non-consumer” debt.  There has been a great debate in the bankruptcy world over what constitutes “non-consumer” debt and the list of what counts and what doesn’t is a long one indeed.  You should speak to one of our knowledgeable, friendly bankruptcy attorneys to find out if your debt falls into this exception.

Too many times, I have met clients that were misinformed by other bankruptcy attorneys and lead to believe that the clients’ only option was to file a 5-year-long chapter 13 bankruptcy.  While chapter 13 does have many,  many advantages and can help you successfully reorganize your debt, why would you want to be in bankruptcy for 5 years if you can accomplish the same thing in as little as 4 – 6 months?  Moreover, the bankruptcy code allows you to make “voluntary payments” after the conclusion of your chapter 7 so if you really want to repay a company or person you used to owe money to before the bankruptcy, the bankruptcy code allows that.

The bottom line is that if you want the most for your money and the best, most cutting-edge legal advice you can obtain, you need to be your own advocate and find the bankruptcy attorney that is right for you.  The Law Offices of Keith D. Collier offers both free in-office and phone consultations.  An attorney is standing by right now to answer all of your questions.