What is it?
The procedure of liquidation within the laws of bankruptcy in the United States. In fact, it is one of the most common types of bankruptcies in the USA.
A Deep Look:
If declaring bankruptcy is a chance for the debtors to come out of the financial crunch and begin afresh, then Chapter 7 Bankruptcy Code is one of the best ways to obtain this in a quicker way. In this code, the rule signifies that every non-exempt property that belongs to the debtor is sold off and the received money is then distributed among the creditors. However, in many cases, the debtors do not possess any assets that they may lose and thus, the new start for the debtor occurs comparatively faster.
How Chapter 7 Bankruptcy Works?
An appointed trustee collects all the non-exempt property, sells the belongings and then distributes the returns collected from the sale to all the creditors. In fact, Chapter 7 is unique compared to other forms of bankruptcy filing codes, because here the debtors do not have to pay anything to trustee.
Although in a few cases, this might mean that the debtors will lose all their assets, but this is not the fact in every case. Thus, it is highly advisable to have appropriate consultation with your bankruptcy attorney if you feel that you might lose all your assets and are hesitant to go for Chapter 7.
Under the Chapter 7 Bankruptcy, debtors obtain a discharge on every dischargeable debt. In fact, there are 19 categories of debt, which are dischargeable under Chapter 7 Bankruptcy code.
An additional benefit of Chapter 7 Bankruptcy code is that the debtors after signing a reassertion contract can continue paying for mortgage on homes or car loan. This contract according to the US Government Bankruptcy Code allows the debtors to keep some of the assets from all.
Is It the Best Solution?
Chapter 7 Bankruptcy is also popular as liquidation, which means conversion of assets or property into money or direct bankruptcy. It is the most common bankruptcy form and 65% of consumer bankruptcy petitions are filed under the Chapter 7 Bankruptcy code. As stated above, it is the quickest way to start afresh for the debtors and this is more favorable, when there is no objection from any of the involved parties. Usually, most of the debts and not all are discharged in a few months after your attorney files for Chapter 7 Bankruptcy petition.
By Kevin Huffman
The procedure of liquidation within the laws of bankruptcy in the United States. In fact, it is one of the most common types of bankruptcies in the USA.
A Deep Look:
If declaring bankruptcy is a chance for the debtors to come out of the financial crunch and begin afresh, then Chapter 7 Bankruptcy Code is one of the best ways to obtain this in a quicker way. In this code, the rule signifies that every non-exempt property that belongs to the debtor is sold off and the received money is then distributed among the creditors. However, in many cases, the debtors do not possess any assets that they may lose and thus, the new start for the debtor occurs comparatively faster.
How Chapter 7 Bankruptcy Works?
An appointed trustee collects all the non-exempt property, sells the belongings and then distributes the returns collected from the sale to all the creditors. In fact, Chapter 7 is unique compared to other forms of bankruptcy filing codes, because here the debtors do not have to pay anything to trustee.
Although in a few cases, this might mean that the debtors will lose all their assets, but this is not the fact in every case. Thus, it is highly advisable to have appropriate consultation with your bankruptcy attorney if you feel that you might lose all your assets and are hesitant to go for Chapter 7.
Under the Chapter 7 Bankruptcy, debtors obtain a discharge on every dischargeable debt. In fact, there are 19 categories of debt, which are dischargeable under Chapter 7 Bankruptcy code.
An additional benefit of Chapter 7 Bankruptcy code is that the debtors after signing a reassertion contract can continue paying for mortgage on homes or car loan. This contract according to the US Government Bankruptcy Code allows the debtors to keep some of the assets from all.
Is It the Best Solution?
Chapter 7 Bankruptcy is also popular as liquidation, which means conversion of assets or property into money or direct bankruptcy. It is the most common bankruptcy form and 65% of consumer bankruptcy petitions are filed under the Chapter 7 Bankruptcy code. As stated above, it is the quickest way to start afresh for the debtors and this is more favorable, when there is no objection from any of the involved parties. Usually, most of the debts and not all are discharged in a few months after your attorney files for Chapter 7 Bankruptcy petition.
By Kevin Huffman
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