Fremont Bankruptcy Attorney explains the Chapter 7 bankruptcy process
Fremont Bankruptcy Attorney explains the Chapter 7 bankruptcy process.
There are two principal types of bankruptcy filings for individuals, Chapter 7, which is a liquidation process, and Chapter 13, a reorganization process.
Chapter 7 bankruptcy is a liquidation of assets to be distributed to creditors. After an individual files a petition with the U.S. Bankruptcy Court, a Trustee is then appointed to each Chapter 7 case upon filing the petition with the court. The Trustee liquidates the Debtor(s) non-exempt property to cash and distributes the proceeds to creditors according to the Code's rules. In a Chapter 7 "No Asset" case creditors will not receive anything after the debtor(s) exemptions are set aside. Pending no objections to dischargeability from creditors, the debtor(s) is discharged from liability for most unsecured debts.
Some debts cannot be discharged in bankruptcy. They include:
- Debts for most taxes
- Debts incurred to pay nondischargeable taxes
- Student loan debt
- Domestic support obligations
- Debts for most fines, penalties, forfeitures or criminal obligations
- Debts for personal injuries or death caused by the debtor's operation of a motor vehicle while intoxicated
- Debts which are not properly listed by the debtor
- Debts for which the debtor has given up the discharge protection by signing a reaffirmation agreement in compliance with the Bankruptcy Code
- Debts owed to certain retirement plans
- Debts that the bankruptcy court has ruled in this case are not discharged
A Chapter 7 bankruptcy is typically placed on a 90-day timeline. After the filing the creditors are entitled to question the debtor in a “341” meeting, named after section of the Bankruptcy code that orders the meeting. Filers must also take a mandatory financial management course or post-bankruptcy course within 45 days of the meeting or the bankruptcy filing can be rejected. Once the deadline for objection to dischargeability has expired, the court will issue an Order of discharge and final decree and the case is closed.
If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
