Learn about the option before deciding
You do not need to have decided to file bankruptcy to ask about Chapter 7. A conversation can help you compare it with settlement, litigation and other approaches, using your circumstances rather than a predetermined recommendation.
What Chapter 7 involves
Chapter 7 is a bankruptcy process in which a trustee administers the case and may sell property that is not protected by applicable exemptions. Whether particular property can be kept requires an individual review. Eligibility also involves financial and other requirements, including a means-test analysis where applicable. It is not enough simply to compare your paycheck with your debts.
Relief has important limits
A bankruptcy discharge removes personal responsibility for certain debts, not every obligation. Some debts are not dischargeable, and a lien may remain enforceable even when personal liability is discharged. Filing generally pauses many collection actions, but exceptions and limitations apply. Do not assume every lawsuit, foreclosure or garnishment will stop in every case.
Prepare for a useful discussion
Bring a complete picture of your debts, income, regular expenses and property, together with relevant court papers. Tell the office about prior bankruptcy cases and significant recent financial transactions. Ask what property concerns need to be evaluated, which debts may remain, and what the filing process would require.
Learning about Chapter 7 is an opportunity to make an informed comparison. It is not a commitment to file or a promise that you qualify.