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Chapter 7

Chapter 7

First a means test must be applied, determining that your residual income for the next five years will be less than $6,000. Then a court-appointed trustee collects your assets, reduces them to cash, and makes distributions to creditors. Because there is little or no property in chapter 7 filings, they are often referred to as “no-asset cases.” You are then discharged of any further responsibility for past debt.

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