Chapter 7:
The fresh start is real.
Credit cards, medical bills, personal loans — wiped out, legally and permanently. For most clients, Chapter 7 is the fastest route from drowning to done: typically a matter of months from filing to discharge.
The clean slate the law promises you.
Chapter 7 is the most common form of consumer bankruptcy, and the most misunderstood. It’s sometimes called “liquidation” — but in practice, the overwhelming majority of Chapter 7 cases are no-asset cases: exemptions protect your belongings, and clients keep what they own while their unsecured debts are discharged.
The moment your case is filed, the automatic stay stops collection lawsuits, garnishments, levies, and the phone calls. A few months later, the court enters your discharge — a permanent federal court order that wipes out qualifying debts. Creditors can never lawfully collect them again.
Overwhelming debt is corrosive. It attacks your family, your sleep, and your health. If you qualify for Chapter 7, you don’t have to spend the next decade treading water — the law gives you a way out, and I’ll walk you through it.
What Chapter 7 can do for you.
Erase credit card debt
Credit cards, store cards, and personal loans are exactly the kind of debt Chapter 7 discharges — no matter how large the balances have grown.
Wipe out medical bills
Illness shouldn't cost you your financial future. Medical debt is fully dischargeable, and it's one of the most common reasons good people end up in my office.
Stop lawsuits & garnishments
Collection suits freeze and wage garnishments stop the day we file. Judgments against you may also be dealt with as part of the case.
Keep your property
Exemptions exist to protect the things you need to live — and in most Chapter 7 cases they protect everything. We'll map yours out before we file, so there are no surprises.
Get done in months
Most Chapter 7 cases run from filing to discharge in a matter of months — not the years a repayment plan takes. One meeting with the trustee, and I'm beside you for it.
Start rebuilding immediately
The day your debt is discharged, your debt-to-income picture transforms. Many clients see credit offers again within months — and this time, on a clean foundation.
How it works — filing to fresh start.
1. Free consultation & qualification check
We review your income, debts, and property together. The “means test” determines Chapter 7 eligibility — I’ll run it with you and tell you plainly whether Chapter 7, Chapter 13, or a non-bankruptcy route fits best.
2. Prepare the petition — carefully
You complete a short required credit-counseling course, and I prepare your petition and schedules. Accuracy here is everything: a well-prepared petition is the difference between a smooth case and a stressful one.
3. We file your case Protection starts here
The automatic stay takes effect immediately. Lawsuits freeze, garnishments stop, and the collection calls have to end.
4. Meeting of creditors
One short meeting with the Chapter 7 trustee — mostly confirming the information in your petition. I prepare you beforehand and sit beside you throughout. Despite the name, creditors rarely attend.
5. Discharge — your clean slate
A federal court order permanently wipes out your qualifying debts. You complete a second brief financial-management course, the discharge enters, and the weight comes off.
Chapter 7 or Chapter 13 — which one fits?
Chapter 7 tends to fit when you…
- Need the fastest fresh start — months, not years
- Have mostly unsecured debt: credit cards, medical bills, personal loans
- Pass the means test based on your income and household
- Are current on (or surrendering) any house or car loans
- Have little or no property beyond what exemptions protect
Chapter 13 tends to fit when you…
- Are behind on a mortgage or car you want to keep
- Have income above the Chapter 7 limits
- Have assets that exemptions wouldn't fully protect
- Owe recent taxes or support arrears needing a structured payoff
- Want to shield a co-signer while you repay
Not sure? That’s the consultation’s job. Learn more about Chapter 13 →
Chapter 7 questions, answered.
In most cases, no. Exemptions protect your property up to set limits, and if you’re current on a mortgage or car loan you can generally keep the property by continuing to pay for it. If your situation is more complicated — significant equity, or arrears on a loan — that’s usually a sign Chapter 13 fits better, and I’ll tell you so honestly before we file anything.
Discharged: credit cards, medical bills, personal loans, most old judgments, and similar unsecured debts. Generally not discharged: domestic support obligations, most student loans, recent taxes, and debts from fraud. At your consultation we’ll go through your actual list, debt by debt, so you know exactly what the filing accomplishes.
The means test compares your household income to the New Jersey median and accounts for your family size and certain expenses. Plenty of working people qualify. If your income is over the line, Chapter 13 remains available — and is sometimes the better tool anyway.
Bankruptcy filings are public court records, but in reality nobody is browsing them. There’s no published list, no notice in the paper, no mark on your door. Your creditors are notified because the law requires it — your neighbors, employer, and family are not.
If you’re months behind on everything, your credit is already absorbing damage with no end date. A Chapter 7 is reported, but it also ends the defaults, zeroes out your debt-to-income ratio, and gives you a floor to build from. Many clients are pleasantly surprised how quickly rebuilding starts.
All debts must be listed — the law requires complete honesty, and so do I. But listing a debt doesn’t always mean losing the relationship: secured loans you want to keep paying (like a car) can often be handled so you keep the property. We’ll structure it correctly from the start.
“Very friendly, so helpful. Daniel Reinganum was very patient and took the time to explain everything in layman’s terms. Very happy with how quickly everything was done.”
One filing. A few months. A clean slate.
Find out in one free conversation whether Chapter 7 can end this. No judgment — just an honest read on your options.