How to Know If Chapter 7 Bankruptcy Is Right for You

If you’re reading this, chances are you’ve been trying to manage overwhelming debt for a while, juggling bills, getting constant collection calls, or even worrying about losing your paycheck to garnishment. It’s exhausting.

The good news is, you’re not out of options. Chapter 7 bankruptcy might be the fresh start you need and contrary to what many people think, it’s not something to be ashamed of. It’s a legal right designed to help people like you reset and rebuild.

At Royes Law LLC, we help individuals understand whether Chapter 7 is the best solution for their financial situation and we make the process as clear and stress-free as possible.

Here’s how to know if it might be right for you.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals to erase (“discharge”) many types of unsecured debt, such as:

• Credit cards
• Medical bills
• Personal or payday loans
• Utility bills
• Old lease or repossession balances

It’s sometimes called a “liquidation bankruptcy,” but in most cases, people keep all of their essential property like a car, household items, and even their home through exemptions under federal or D.C. law.

The result? A clean slate and a chance to start over debt-free.

Signs Chapter 7 May Be Right for You

Here are some clear indicators that Chapter 7 could be the right path:

1. You’re drowning in unsecured debt

If your biggest financial burdens are credit cards, medical bills, or personal loans that you simply can’t keep up with, Chapter 7 is often the fastest, most effective relief available.

2. You’ve fallen behind and can’t catch up

When you’re paying minimums but your balances never shrink, or when every paycheck is already spent before you get it, Chapter 7 can stop the cycle and let you rebuild without endless stress.

3. Creditors are calling or suing you

Filing Chapter 7 immediately triggers the automatic stay, which legally stops all collection activity including phone calls, wage garnishments, and pending lawsuits.

4. You’re facing repossession or bank levies

If creditors are threatening to take property or freeze your bank account, Chapter 7 can stop it and give you breathing room.

5. You don’t have substantial assets or high income

Chapter 7 is ideal for people who don’t have significant property or luxury assets that could be sold to pay creditors and for those whose income is modest compared to their expenses.

The Means Test: Do You Qualify?

To file for Chapter 7, you must pass something called the means test, which compares your income to the median income in your state.

If you earn less than the median, you automatically qualify. If you earn more, you may still qualify after accounting for necessary living expenses such as rent, transportation, and childcare.

Attorney A.K. Royes reviews every client’s financial picture in detail to determine eligibility and ensure the case is filed correctly the first time.

Many people assume they don’t qualify for Chapter 7 but once we review the numbers, they often do.

What You Can Keep

One of the most common fears about bankruptcy is, “Will I lose everything?” The answer for most clients is no.

Under D.C. and federal exemption laws, you can typically keep:

• Your home (up to a certain equity amount)
• Your vehicle (up to a certain value)
• Personal items like clothing, furniture, and electronics
• Retirement accounts and pensions

At Royes Law LLC, we carefully review your assets before filing to ensure everything that can be protected is protected.

When Chapter 7 Might Not Be the Best Fit

While Chapter 7 is the right solution for many people, it’s not perfect for everyone. It may not be your best option if:

• Most of your debt is secured (like a mortgage or car loan you want to keep paying)
• You’re behind on child support, taxes, or student loans (these are typically not dischargeable)
• You’ve filed bankruptcy in the last eight years
• You want to protect multiple high-value assets or investment property

If any of these apply, another type of bankruptcy such as Chapter 13 might offer more flexibility. Royes Law LLC can help you decide which option best protects your finances.

Why Chapter 7 Could Change Your Life

For many clients, Chapter 7 is more than just financial relief, it’s emotional relief. The stress lifts. The constant worry fades. You can sleep again, focus again, and start planning for your future instead of surviving paycheck to paycheck.

The process is straightforward, and most Chapter 7 cases are completed within 3–4 months. Once your debts are discharged, they’re gone for good and you can start rebuilding your credit and your confidence.

Take the First Step Toward a Fresh Start

You don’t have to face financial stress alone. At Royes Law LLC, we’ll help you understand your options, determine if Chapter 7 is right for you, and guide you through the entire process from start to finish.

Contact Royes Law LLC today to schedule your consultation and find out whether Chapter 7 bankruptcy is the key to your fresh financial start.