Chapter 7 Bankruptcy is a liquidation proceeding in which the debtor's non-exempt assets are sold by the Chapter 7 trustee and are distributed to creditors according to the priorities established in the Code. Eligibility for filing Chapter 7 Bankruptcy is determined by the means test instituted with the 2005 amendments to the Bankruptcy code. Chapter 7 is generally the simplest and quickest form of Bankruptcy and is available to individuals, married couples, corporations and partnerships.
Individuals who are residents, have a Business place, or own property in the United States may file for Bankruptcy in a federal court under Chapter 7. Chapter 7 Bankruptcy is not available to individuals who have had Bankruptcy cases dismissed within the prior 180 days under specified circumstances.
In a Chapter 7 Bankruptcy, the individual is allowed to keep certain exempt property. The value of property that can be claimed as exempt varies from state to state. Other assets, if any, are liquidated by the interim trustee to repay creditors. Many types of unsecured debt are legally discharged by the Bankruptcy proceeding, but there are various types of debt that are not discharged in a Chapter 7. Common exceptions to discharge include child support, income taxes less than 3 years old and property taxes, student loans and fines and restitution imposed by a court for any crimes committed by the debtor. Spousal support is likewise not covered by a Bankruptcy filing nor is property settlements through divorce. Despite their potential non-dischargeability, all debts must be listed on Bankruptcy schedules.
And so far as businesses are concerned when a troubled business is badly engrossed in debt and unable to repay its creditors, it may file for Bankruptcy under Chapter 7. A Chapter 7 filing means that the business ceases operations unless continued by the Chapter 7 Trustee. A Chapter 7 Trustee is appointed with broad powers to examine the business's financial affairs. The Trustee generally sells all the assets and distributes the proceeds to the creditors.
When you are to file for a Chapter 7 bankruptcy, none can guide you better than a qualified Bankruptcy attorney. A Bankruptcy attorney can advise the debtor on when the best time to file is, whether they qualify for a Chapter 7 or need to file a Chapter 13, ensure that all requirements are fulfilled so that the Bankruptcy will go smoothly, and whether the debtor's assets will be safe after filing. With expanded requirements of the BAPCPA Bankruptcy act of 2005, filing a personal Chapter 7 Bankruptcy has become complicated. A Dedicated Bankruptcy Attorney at your service will help you make know your options and survive through bankruptcy.
Usually it is asked is Chapter 7 Bankruptcy the best solution? May be, this is most common type of Bankruptcy in United States. Chapter 7 Bankruptcy is one of the faster ways of starting afresh and more so if there are no objections from any of the parties involved. Ordinarily, most debts are supposed to be discharged within months of the attorney filing a Bankruptcy petition.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Las Vegas Bankruptcy Attorney
Get Online Application at online Bankruptcy Lawyer.