Chapter 7 Bankruptcy

Chapter 7 of the Bankruptcy Code deals with "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. A chapter 7 bankruptcy case does not involve the filing of a plan of repayment. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity.

Chapter 7 bankruptcy is used by Debtors to eliminate, or discharge, certain unsecured debt. Secured debt, such as car, boat, RV, motorcycle loans, can be discharged if you return the property to the lender. However, you can keep the property as long as you are willing to continue paying. Real Estate can be included in the bankruptcy to hold off a foreclosure, which is done to give you time to secure alternative financing. It is not a permanent measure, which means you cannot include your home and be discharged of the debt. Certain kinds of debt cannot be discharged and include domestic support obligation, most taxes and government fines.

There are rules and guidelines to follow and we are experienced in bankruptcy filings to show you if Bankruptcy is right for you and can help to determine if you qualify for bankruptcy.

What is Chapter 7 Bankruptcy & Filing Chapter 7 Bankruptcy

Chapter 7 bankruptcy procedures releases you from debt obligation including finance company loans, credit card bills, and medical bills. However, Child support payments, student loans and recent taxes cannot be dismissed in a Chapter 7 bankruptcy, and you must pay home mortgage or car loans to keep them. As per Chapter 7 bankruptcy information, most kinds of debt will be erased. In return, the appointed bankruptcy trustee will liquidate nonexempt property in order to generate cash and partially recompense creditors. Since the majority of property is exempt, Chapter 7 bankruptcy filers often retain most or all of their property.

The bankruptcy "means test," a formula intended to prevent those with higher incomes from filing for Chapter 7 bankruptcy, can help figure out if your income is low enough to file Chapter 7 bankruptcy. Allow our Chapter 7 bankruptcy attorney to help you.

If you own a small business and are struggling with debt, filing Chapter 7 bankruptcy might help. The 2008 economic downturn led to an increase in bankruptcies filed by small business owners. However, filing for Chapter 7 bankruptcy won’t be the answer for every small business owner because it only covers debts the owner is personally liable. If your business is a sole proprietorship or general partnership, you are personally liable for all of your business’s debts, and Chapter 7 personal bankruptcy will help remove those debts. If your business is a separate legal entity (a corporation or limited liability company, LLC), you are personally liable for the business’s debts only if you personally signed for them or guaranteed them. Otherwise, the corporation or LLC must file its own business bankruptcy case to discharge its debt.

Contact Our Chapter 7 Bankruptcy Law Firm

Please contact our Chapter 7 attorney to assist you with filing Chapter 7 bankruptcy or if you want to better understand the available Chapter 7 bankruptcy information.