Chapter 7 bankruptcy liquidation

Law Office of 
Charles E. Andersen

Chapter 7 is also know as straight bankruptcy if you don't want to repay any debt, chapter 7 is an option to consider
Chapter 7 is also called a fresh start bankrutpcy
The US Trustee is a participant in a chapter 7 Hon. John C. Ninfo chief US Bankruptcy Court Judge US Bankruptcy Court
Law firm

of Charles E. Andersen


filing a chpater 7


Substantial Abuse of Chapter 7


         A case also may be dismissed, after notice and a hearing, if the bankruptcy petition was filed by an individual debtor with primarily consumer debts under circumstances constituting a substantial abuse of relief under Chapter 7. [B.C. 707(b)] In re Kelly, 841 F.2d 908 (9th Cir. 1988)] The motion to dismiss must be filed by the United States trustee or must be made sua sponte by the court; a dismissal under this provision cannot be initiated by a motion or suggestion of a party in interest. (B.C. 707(b)) but see In re Clark, 927 F.2d 793 (4th Cir. 1991) motion can be filed by United States trustee even though initially suggested by a creditor.


a. Criteria:  The courts have considered the following factors in deciding whether to dismiss a Chapter 7 case on the ground of substantial abuse [B.C. 707(b)] In re Newsom, 69 Bankr. 801 (Bankr. D.N.D. 1987)]:


(1) The probability that the debtor's future expected income will be sufficient to pay a significant percentage of the unsecured claims under a Chapter 13 plan


(2) The debtor's reason for filing the Chapter 7 petition, e.g., because of unemployment, medical expenses, disability, or other misfortune;


(3) The extent to which the debtor obtained cash advances and made consumer purchases beyond her ability to repay,


(4) The excessiveness or extravagance of the debtor's anticipated family budget; and


(5) The extent to which the debtor's income statement misrepresents her actual financial condition.


b. Presumption: There is a statutory presumption in the debtor's favor regarding the question of whether granting relief would be a substantial abuse of Chapter. [B.C. 707(b)]


Chapter 7 discharge

obtaining a chpater 7 discharge the bar date has passed arriving at the office
I hope he's in



sitting down to sign







Chapter 7&13

If you qualify



  • Creditor Harassment
  • Stop utility shutoffs
  • eliminate payments on unsecured debts.
  • Improve bad credit
  • Surrender car, and other secured collateral without incurring a "deficiency"

**For Chapter 13 cases with wage order and balance paid through a trustee as part of a partial re-payment plan and not paid directly to the attorney. Court filing fee is extra.

  • Emergency Petitions filed
  • Ask to see a statement of clients rights and responsibilities


Free Consultation

Reasonable rates








attorneys pen
Signing the court papers shaking hands leaving attorneys office

200 William St. STE 204A
Elmira, NY 14901
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receipt of filing automatic stay order for relief section 341 Notice
meeting fo the creditors court discharge order debt wipe out