Chapter 7 Liquidation
Too many credit card bills?
For immediate help,
call toll free for alternative to bankruptcy.
Chapter 7 bankruptcy or
"straight bankruptcy" is the most popular form of
bankruptcy because it allows the debtor to "wipe the slate
clean" and start all over. This code is available to
corporations and partnerships. Discharge normally occurs within 4-6 months
Non-exempt assets will go under the care
of a trustee who liquidates them to satisfy creditors in order
of their secured interests. Any wages a debtor earns is off
limits to creditors who had a vested interest on the date of
This code is generally used by those who lack
sufficient income to cover outstanding debts after taking care of
basic necessities, and who have no hope of ever repaying their
are certain obligations that are not dischargeable, for
Alimony and child support
Back taxes under 3 years
old and student
Recently made purchases for
Property executed contracts
involving titles or liens
Before considering chapter 7
you should take an inventory of the types of debt owed.
This will give you a better idea if filing will give you the
relief you seek.
Who should consider chapter
* If there is no hope of repaying any of your debts.
* If there
are no cosigners involved,
* If court action by creditors
is imminent, filing stays all collection proceeding while
Ruins your credit. If you have a cosigner, they will still be
responsible for the debt you discharge. Pay attorneys, court and
filing fees upfront.
If you can't discharge enough of your debts or have to sacrifice
too much property you may want to consider chapter 13 or a credit
counseling / debt consolidation repayment plan.