Chapter 7 Bankruptcy is often called “liquidation bankruptcy.” Widely viewed as the most straightforward bankruptcy, Chapter 7 is available to individuals as well as corporations.
What is the Purpose of a Chapter 7 Bankruptcy Filing?
A Chapter 7 bankruptcy filing will discharge applicable debts, so you can start over financially. Once your bankruptcy filing is complete and you receive a discharge for your debts, you will no longer have any liability for those debts. If you have assets, a bankruptcy trustee can turn over your non-exempt property and convert it to cash for distribution to your creditors.
If you do not have any assets, your debts will be discharged by the court without any further payments to your creditors. Although Chapter 7 Bankruptcy is available to individuals and corporations alike, only individuals will receive a discharge for their debts, a corporation will simply be dissolved. Once all the assets of a corporation have been fully administered, the case is closed.
The Chapter 7 Bankruptcy Process
Once your bankruptcy lawyer has filed you Chapter 7 bankruptcy case an “automatic stay” is automatically ordered by the court, which stops all creditor collection actions against you. Approximately 30 days after the Chapter 7 Bankruptcy petition is filed, a meeting called the “meeting of creditors” will be conducted by the bankruptcy trustee. Although it is called a “meeting of creditors,” it is extremely uncommon for creditors to attend this meeting. You are required to attend this meeting and provide honest answers to the bankruptcy trustee’s questions.
After the Chapter 7 Bankruptcy debtor has their meeting and the bankruptcy trustee is satisfied that the information provided is accurate, you will become eligible to have your debts discharged. Most Chapter 7 bankruptcy cases take about six months from the initial bankruptcy filing to be discharged.
Benefits of Chapter 7 Bankruptcy
• The Automatic Stay will Stop Creditor Harassment
• Once you Receive a Discharge you can Start to Rebuild Your Credit
• Stop Wage Garnishments
• Eliminate Repossession Debts
Let Us Assist You with Bankruptcy
We have represented many clients in chapter 7 bankruptcy cases. Let us represent you with your Chapter 7 bankruptcy filing, and help you obtain a positive new financial future. We offer free Chapter 7 bankruptcy consultations to prospective clients. Contact us today (888) 728 0044, or email us here.