A Chapter 7 bankruptcy is by far the most popular type of bankruptcy. Chapter 7 offers American consumers the chance to emerge out of a financial crisis and to wipe the slate clean their debts through a relatively swift chapter 7 bankruptcy process organized by professional consumer bankruptcy attorneys. More than 65% of all bankruptcies are Chapter 7. Chapter 7 bankruptcy is the preferred bankruptcy method for many debtors that have little or no real assets to loose, because with a Chapter 7 bankruptcy, all of the non-exempted property of the consumer is sold and the proceeds are distributed to the creditors. Therefore, if the consumer has no real assets to loose, then Chapter 7 bankruptcy is a quick, easy, clean way to start out anew.
How to File Chapter 7 Bankruptcy
To begin with, the bankruptcy court will appoint a Chapter 7 bankruptcy trustees. The trustee will find and collect any non-exempt property/assets from the debtor. The trustee will sell the debtor’s non-exempt property/assets and the revenue from the sale will be distributed to all of the creditors. The debtor does not pay any money to the trustee. If the debtor has no assets or non-exempt property, then the trustee will not conduct a sale.
Does Chapter 7 Bankruptcy Mean You Will Loose Your Home or Automobile?
One great benefit of filing for a chapter 13 bankruptcy, or a chapter 7 bankruptcy for that matter, is that you can immediately sign a reaffirmation agreement, allowing you to keep your home and your car. The reaffirmation agreement allows the consumer to continue to pay their mortgage company and/or their automobile finance company just as they did before the bankruptcy. The reaffirmation agreement is actually part of the United States Bankruptcy Code and allows the consumer to keep some or all of their property.
With a Chapter 7 personal Bankruptcy attorney, the consumer debtor will receive a discharge on all their dischargeable debts. Once a debt is discharged, the creditor or collection agency has no legal right to pursue the consumer for any reason relating to the discharged debt and has no recourse to try and collect a debt that has been discharged.More...
To begin with, the bankruptcy court will appoint a Chapter 7 bankruptcy trustees. The trustee will find and collect any non-exempt property/assets from the debtor. The trustee will sell the debtor’s non-exempt property/assets and the revenue from the sale will be distributed to all of the creditors. The debtor does not pay any money to the trustee. If the debtor has no assets or non-exempt property, then the trustee will not conduct a sale.
Does Chapter 7 Bankruptcy Mean You Will Loose Your Home or Automobile?
One great benefit of filing for a chapter 13 bankruptcy, or a chapter 7 bankruptcy for that matter, is that you can immediately sign a reaffirmation agreement, allowing you to keep your home and your car. The reaffirmation agreement allows the consumer to continue to pay their mortgage company and/or their automobile finance company just as they did before the bankruptcy. The reaffirmation agreement is actually part of the United States Bankruptcy Code and allows the consumer to keep some or all of their property.
With a Chapter 7 personal Bankruptcy attorney, the consumer debtor will receive a discharge on all their dischargeable debts. Once a debt is discharged, the creditor or collection agency has no legal right to pursue the consumer for any reason relating to the discharged debt and has no recourse to try and collect a debt that has been discharged.More...
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