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Basically, Filing Chapter 7 Bankruptcy
means that all of your debt gets completely wiped out, except for some types of tax debt, secured debts, restitution,
and gambling debts, among others. Wondering
which chapter you qualify for? Want to know before you see an attorney? Just click here and fill out this form, we just need some basic information to get started, and we will contact you
shortly after you finish to let you know which chapter bankruptcy is most likely right for you! Chapter 7 bk is designed
as an orderly, court-supervised procedure by which a trustee collects the assets of the debtor’s estate, reduces them
to cash, and makes distributions to creditors, subject to the debtor’s right to retain certain exempt property and the
rights of secured creditors. Because there is usually little or no nonexempt property in most chapter seven bk cases,
there may not be an actual liquidation of the debtor’s assets. These cases are called “no-asset cases.”
Usually a debtor with assets that they wish to keep and that are not covered by exemptions file chapter 13 bankruptcy. A creditor holding an unsecured claim will get a distribution
from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court.
In most chapter 7 bk cases, the debtor receives a discharge that releases the debtor from personal liability for certain
dischargeable debts. The debtor normally receives a discharge three to four months after the petition is filed.
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