Chapter 7 Bankruptcy Alaska: 3 Things You Need to Know

If you're experiencing financial difficulties and find it challenging to navigate your options, you're not alone. That's why we've crafted this article to guide individuals facing similar challenges. If you're contemplating Chapter 7 bankruptcy, particularly in Alaska, here are some essential considerations before proceeding:
Information in this article does not constitute legal advice, it is for informational purposes only, and may not constitute the most up-to-date information. Readers should contact their attorney for advice on any particular legal matter.
  1. Determine your eligibility for Chapter 7 bankruptcy and understand the associated costs in Alaska.
  2. Explore alternative options that may better suit your financial situation.
  3. Familiarize yourself with specific details about Chapter 7 bankruptcy in Alaska, which we'll elaborate on below to ensure you have the necessary information to make an informed decision.

Additionally, if you prefer visual aids, you can use the Alaska Chapter 7 Calculator provided below to estimate your eligibility and costs.

1) How Chapter 7 Bankruptcy Works in Alaska

How Fast Do You Get Relief in A Chapter 7 Bankruptcy in Alaska

Typically, it takes approximately 120 days to conclude a no-asset Chapter 7 case in Alaska from initiation to completion. A no-asset bankruptcy indicates that you do not possess substantial assets exceeding the Alaska bankruptcy exemptions. Thus, if you lack excess assets, your bankruptcy proceedings could be swiftly resolved.

How Much Does It Cost To File Chapter 7 Bankruptcy in Alaska

The cost of filing for Chapter 7 bankruptcy nationwide usually falls between $500 and $3000. However, even within Alaska, the cost of Chapter 7 bankruptcy can differ depending on where you file. For instance, if you file in Fairbanks, you might pay a bankruptcy attorney fee of $1,100, whereas in Anchorage, you might pay around $1,500.

Additionally, there are situations where the cost of filing for bankruptcy can be reduced through a filing fee waiver. It's worth looking into the Alaska filing fee waiver for more information.

So, How Do I Qualify For Chapter 7 Bankruptcy in Alaska?

When assessing your eligibility for Chapter 7, it's important to consider the Chapter 7 Bankruptcy Alaska Income Limits. This evaluation determines whether you qualify for a bankruptcy discharge, meaning your debts will be forgiven.

If you successfully pass the Alaska means test, which you can estimate below, Chapter 7 will address most of your unsecured debts. Unsecured debts do not have any collateral, such as medical bills, personal loans, certain old income tax debts, old utility bills, credit card debts, and most personal judgments.

What about secured debts in Chapter 7?

If you seek to eliminate secured debts like car loans and mortgages, Chapter 7 bankruptcy might still be an option. However, the caveat is that you'll need to surrender the asset to the creditor, who will consider it as full payment for your debt.

IMPORTANT: Chapter 7 Qualification via Alaska Means Test

You can assess your eligibility for Chapter 7 bankruptcy in Alaska using the Bankruptcy Means Test. This form calculates your average annual income based on your gross income from the last six months and compares it to the median income of other households in Alaska. If your median income falls below the Alaska median income, you may qualify for a Chapter 7 bankruptcy discharge. You can utilize the calculator below to determine your eligibility.

My Income Exceeded The Chapter 7 Means Test Allowable in Alaska

If your income exceeds the median income in your state, delving into part 2 of the means test or exploring alternative options may be necessary. We recommend referring to this helpful resource for navigating the Chapter 7 means test when income exceeds the median.

Chapter 7 Bankruptcy Alaska Income Limits

If you're filing for bankruptcy in Alaska on or after November 1, 2023, here are the income limitations based on household size:

# of PeopleAnnual Income
  • 10+: add $9,000 for each additional individual

Will I lose my belongings if I file Chapter 7 bankruptcy? Understand Alaska bankruptcy exemptions

Bankruptcy exemptions are vital for protecting your property during bankruptcy proceedings, preventing assets from being sold off. In Alaska, the bankruptcy homestead exemption allows individuals to safeguard up to $72,900 of equity in their homes, irrespective of age or marital status. This protection extends to co-owners, with each entitled to claim a portion of the exemption.

Exploring all available bankruptcy exemptions in Alaska, including federal options, ensures comprehensive asset protection. Staying informed with up-to-date information is crucial for navigating the bankruptcy process effectively.

Chapter 7 Bankruptcy Alaska Pros and Cons


  • The pace of receiving a discharge: Within approximately 120 days, you could achieve debt relief and begin anew.
  • Protection of property: Meeting exemption criteria under Chapter 7 bankruptcy may enable retention of a significant portion of personal assets.
  • Halting debt collection lawsuits: Filing initiates an automatic stay by the court, halting legal actions such as calls and letters from collectors.
  • Dealing with loan deficiency: Bankruptcy offers potential relief from debts surpassing collateral value, alleviating the burden of loan deficiencies.


  • Income qualifications: Specific income thresholds must be met to qualify for Chapter 7 bankruptcy.
  • Risk of property loss: Exceeding exemption limits may result in the potential loss of assets.
  • Credit report repercussions: Filing for Chapter 7 bankruptcy can significantly impact your credit report, remaining on record for ten years and impeding future loan approvals and favorable interest rates.
  • Non-dischargeable debts: Not all debts can be discharged through Chapter 7 bankruptcy; obligations like student loans and child support payments typically remain ineligible for discharge.

2) Alternatives to Chapter 7 Bankruptcy in Alaska

a) Chapter 13 Bankruptcy

For those surpassing the income threshold for Chapter 7 bankruptcy in Alaska, one option is to consider Chapter 13 bankruptcy over Chapter 7 Bankruptcy. Through Chapter 13, debts can be restructured into a feasible monthly repayment plan, facilitating the retention of assets like homes and vehicles, and preventing foreclosure and repossession. Additionally, it may aid in reducing outstanding payments for child support, alimony, and car loans.

Can you afford Chapter 13 bankruptcy?

If contemplating Chapter 13 bankruptcy, utilize this calculator to gauge your ability to handle the monthly payments.

b) Debt Settlement/Relief

Debt settlement offers an alternative to Chapter 7 and Chapter 13 bankruptcy. With this approach, a debt settlement company negotiates a reduced total debt, potentially saving you money over time. However, be mindful of its effect on your credit score and ensure you research and select a reputable and transparent debt settlement firm.

c) Alaska Debt Management

Another avenue to consider is debt management. Unlike debt settlement, which focuses on reducing the total debt amount, debt management companies aim to lower your interest rates. These programs typically span 3 to 5 years and may be costlier than debt settlement. Additionally, not all creditors may cooperate with debt management companies.

However, if you're grappling with high-interest credit card debt, debt management could potentially reduce interest rates by 10-20%. This reduction may lead to significant savings of 30-50% on your existing debt, facilitating a more efficient repayment process. Assessing your financial circumstances and determining the most suitable option is crucial.

d) Alaska Debt Payoff Planning

Lastly, there's debt payoff planning. While it demands effort and disciplined budgeting to trim expenses and allocate surplus income towards debt repayment, it offers tangible progress monthly. By selecting a suitable debt payoff plan, you can steadily chip away at your debt. Additionally, as you clear debts, you can redirect those payments towards remaining balances, accelerating the payoff process.

3) Specific Alaska Chapter 7 Bankruptcy Information:

Alaska Chapter 7 Bankruptcy Credit Counseling and Debtor Education Courses

During the Chapter 7 bankruptcy filing process, completing two courses is mandatory to obtain a bankruptcy discharge. These courses provide insights into your financial situation and alternative solutions. Following the filing, you must also undertake a debtor education course, equipping you with tools for improved financial management.

Approved by the United States Trustee's office, specific companies in Alaska offer these courses. You can access a list of these approved entities on the UST website.

Alaska Chapter 7 bankruptcy Court Locations

It's crucial to remember the 341 meeting(s) of creditors, which, due to the pandemic, are often conducted via phone or Zoom. However, familiarity with the nearest courthouse location is vital in case of an in-person requirement. To assist you, we'll furnish a list of court locations organized by bankruptcy districts in Alaska.

District of Alaska

Here are the locations of U.S. Bankruptcy Courts and a Superior Court in various cities throughout the state:

  • Anchorage: 605 W. 4th Ave, Suite 138, Anchorage, AK 99501
  • Fairbanks: 101 12th Ave, Room 332, Fairbanks, AK 99701

Chapter 7 Bankruptcy Trustees Alaska

Below, we'll provide a list of Chapter 7 bankruptcy trustees in Alaska, along with a link for your convenience.

  • Kenneth Battley - Contact: (907) 274-6683
  • Nacole M. Jipping - Contact: (907) 351-7929
Kenneth Battley(907) 274-6683
Nacole M. Jipping(907) 351-7929


Now that you've learned about Chapter 7 bankruptcy in Alaska, you're likely more informed about the requirements and alternative options. If you want to quickly assess your eligibility and estimate the associated costs, consider using the Chapter 7 bankruptcy means test calculator provided below.

If you're interested in delving deeper into the Chapter 7 bankruptcy process, feel free to explore our comprehensive guide, "Chapter 7 Bankruptcy Process," for a detailed overview.

Additionally, if you're looking to reduce attorney fees and are open to handling some tasks on your own, we offer an informative article on the topic.

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