 |
Back to Bankruptcy Attorneys Home |
What is Chapter 7 Bankruptcy?
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, referred to as liquidation, is usually filed for by individuals or spouses. When you file for Chapter 7 bankruptcy, your attorney or the court will collect your non-exempt assets and liquidate them. Non-exempt assets are considered unnecessary day-to-day items, and include things such as trailers or boats. Exempt assets are considered neccessary items, and may include things such as cars, homes, household furniture, jewelry, pensions, unpaid/earned wages, and items of clothing.
After your assets are liquidated, the court or your attorney will distribute the proceeds to your creditors. By doing this, your debt is eliminated. If you do not have any assets to liquidate, and you file for Chapter 7 bankruptcy, your debt is normally discharged within a few months.
It costs approximately $299 to file for Chapter 7 Bankruptcy, and the filing process usually takes about 4-6 months to complete. After you receive your bankruptcy discharge by the court, you no longer owe your creditors. After filing for bankruptcy, a person may have some credit related problems that will take several years to fix. Bankruptcy can decrease your eligibility or increase your interest rates for mortgage loans, credit cards, car loans, and bank loans.
Other Bankruptcy Topics:
|
|