Liquidation and Chapter 7
A San Jose bankruptcy attorney explains Liquidation and Chapter 7
Chapter 7 Bankruptcy is also known as “liquidation.” The goal of a Chapter 7 bankruptcy is to clear out the debtor’s unsecured debts. Unsecured debts includes debts such as credit card bills, medical bills, personal loans which are not secured, etc.
Why is Chapter 7 Bankruptcy Called “Liquidation”
The way the Chapter 7 bankruptcy works is: all of your property and assets which exceed the exemption limits are sold and used to pay off creditors. There are exemptions in place for a certain amount of equity in your home, your vehicles, your personal property, etc. If you own merely “the basics” then you are not likely to lose any of your assets in a Chapter 7 bankruptcy. However, if you own a fancy boat, for instance, or a second property with a lot of equity in it, then these items may be subject to being sold in your Chapter 7 bankruptcy. Consult with an attorney to find out if any of your assets are likely to be sold during a Chapter 7 Bankruptcy.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
