Chapter 7 Bankruptcy Law

Understand if Chapter 7 Bankruptcy can help you

One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.” To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity, however only individuals may get their debt “discharged”. A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. A chapter 7 discharge is subject to many exceptions, so it is very important for debtors to consult an expeienced bankruptcy attorney before filing in order to discuss the scope of a potential discharge.

A chapter 7 bankruptcy case a bankruptcy trustee who gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

Learn about the pros and cons of filing Chapter 7 – call me for a free case evaluation

Chapter 7 may or may not be the best course of action for you. As an experienced bankruptcy attorney I will tell you what your life will continue to look like under a heavy debt burden, and I will tell you what to expect after you have filed bankruptcy. I let the facts speak for themselves and I will help you make the best decsion for your particular circumstances.