How Does Chapter
7 Bankruptcy Work?
A trustee is appointed who collects
all non-exempt property, sells the assets and distributes proceeds from
this sale to appropriate creditors. Chapter 7 is different from other
bankruptcy filings because the debtor needs not make a payment to the
trustee.
Even though in some cases this would
mean that you will lose all your assets, this need not always be the case.
It is strongly recommended that if you are apprehensive and feel you will
lose your assets, discuss the matter with your Bankruptcy
Attorney.
Under Chapter 7 Bankruptcy, the
debtor receives a discharge on all dischargeable debts. There are 19
general classes of debt, such as child support, most taxes and student
loans that are discharged under Chapter 7 Bankruptcy.
An added advantage with Chapter 7
bankruptcy is that by signing a reaffirmation agreement a debtor can
continue to pay for a car loan or a mortgage on their home. This agreement
is in place because as per the US Government Bankruptcy Code a debtor
could be allowed to retain some or all of his property.
Who Can File For
A Chapter 7 Bankruptcy?
The reverse of this question would
be more appropriate to answer. Debtors engaged in business would usually
not like the prospects of liquidation and Chapter 11 might be a better
option for such individuals associated with corporations and partnerships.
Also, individuals with regular income if in a debt situation would be
better suited to file a Chapter 13 bankruptcy.
Also, any person who has been
granted a Chapter 7 discharge (or completed a Chapter
13 plan) within the last 6 years, cannot file for a Chapter 7
bankruptcy plan.
How Do I File
For A Chapter 7 Bankruptcy?
Once you get down to filing
for Bankruptcy you'll know exactly what we mean by repeating that our
attorneys know best! Filing for bankruptcy is the fulfillment of a clearly
laid of set of rules and procedures, but it is as complex as it seems
simple. You need to be sure about just one thing: "Do you need to
file for bankruptcy?" Once you've filled our evaluation
form and got the answer to that basic question, in discussion with our
attorneys give all details of your case. Be sure the information you
provide is complete and correct. Once these preliminary things are taken
care of, leave it to the attorneys to take your case to its logical
conclusion.
|
