Chapter 7 Bankruptcy

Basically, in a straight bankruptcy case (also known as Chapter 7 bankruptcy or liquidation bankruptcy), the court may take and liquidate or sell the debtor’s assets (assuming he has any), except for those kinds of assets listed under the law as being “exempt” from being liquidated or seized by the creditors.

under Chapter 7 bankruptcy Proceeds from any such liquidated assets would then be distributed-through a court appointed or court supervised “trustee”-to the debtor’s creditors, and Chapter 7 bankruptcy the debtor would have no further legal obligation on any of his dischargeable debts. Of course, if the debtor has no assets that can be seized or liquidated in the first place-or, as it most frequently happens, work with your bankruptcy lawyer.

if the assets he has consist only of “exempt” type assets-the debtor will still keep all his belongings while the creditors get absolutely nothing with Chapter 7 bankruptcy.

Chapter 7 bankruptcy

Step-by-step procedures for a Chapter 7 bankruptcy filing:

1) Determine that you meet the eligibility requirements

2) Determine whether you should do some bankruptcy planning in advance of filing

3) Order the forms necessary for filing (you might as well get the all-in-one kit)

4) Fill out the initial petition forms

5) Properly Sign the Forms

6) File the Completed Forms with the court and pay the fee (a little over $200.)

7) Begin to prepare for the first meeting of creditors and cooperate with the court-appointed trustee

8) Attend the first meeting of creditors

9) Return any purchase-money secured property you have, or apply to pay for it

10) Take care of any mattes that may arise in the mean time

11) Attend the final (the discharge) hearing

12) Obtain your final papers of disclosure

13) Some post-discharge matters

14) Now you can go home and start your life over…without making the same mistakes again

Chapter 7 bankruptcy and a good bankruptcy lawyer