Chapter 7 Bankruptcy Details You Should Know About
Chapter 7 bankruptcy is the simplest and most common form of bankruptcy—often called the “liquidation chapter.” From start to finish, it only lasts a few short months.
If you have assets not protected by what’s called an “exemption”, your case will be designated an “asset case”, where a Chapter 7 trustee will sell the asset(s) and distribute the funds to your creditors based upon what they are entitled to receive.
Some Chapter 7 trustees can be very aggressive in looking for and liquidating assets, so it’s important to speak to us to see if Chapter 7 is right for you. It may also be that a Chapter 7 liquidation is best for your situation. It is important to engage an experienced and competent attorney to assist you with a Chapter 7 because once you file it, it is difficult- if not impossible to get out.
In exchange, the court will issue you an order of discharge of your personal liability for most debts.
There are two types of Chapter 7 cases, one that consists of “consumer debts” and one where debts are primarily business debts. There are significant differences between the two. We will be happy to explain the differences to you during your consultation.