Chapter 7

Chapter 7 bankruptcy is known as the “liquidation” chapter of the U.S. Bankruptcy Code. This is because it involves the liquidation process, in which a debtor’s non-exempt property is sold by a bankruptcy trustee in order to acquire funds for the repayment of creditors. It is important to note that there are many property exemptions in Indiana, and that a large number of those individuals who file for Chapter 7 are able to avoid the liquidation process. This means that they are able to complete their bankruptcy proceedings without losing any of their property. If you are facing bankruptcy, you should contact a Terre Haute bankruptcy lawyer for legal guidance and counsel.


Chapter 7 is the most common form of consumer bankruptcy filed in the United States, says Rowdy Williams, a bankruptcy attorney in Terre Haute. Individuals, partnerships, corporations, and other business entities are eligible to file for Chapter 7 protection, but an individual who intends to file must first qualify by taking a “means test.” This test involves a two-step analysis:

  • Step 1: The debtor’s current monthly income is compared to that of the median income for Indiana. If the debtor’s income level is below that of the state average, then it is likely that the debtor will qualify for Chapter 7. If the income level is above that of the state average, the second analysis comes into play.
  • Step 2: This involves making certain deductions from the debtor’s current monthly income in order to calculate a “disposable income” figure. If the debtor’s disposable income is less than the limit delineated in the bankruptcy code, then the debtor will qualify for Chapter 7.


A bankruptcy attorney in Terre Haute at Rowdy Williams Law Firm has extensive education in the area of bankruptcy. Our Terre Haute bankruptcy lawyer has represented clients in a wide variety of cases, including many that involved Chapter 7 proceedings. A bankruptcy attorney in Terre Haute is available to provide you with one on one service in your Chapter 7 case in an effort to free you from unmanageable debt as quickly and efficiently as possible. If you are a bankruptcy candidate, it is important to discuss your situation with a chapter 7 bankruptcy attorney in Terre Haute. Only they can provide top-notch advice with award winning representation so you can get out of bankruptcy prison.