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The Facts About A Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed to eliminate debt. It is often referred to as a “straight” bankruptcy or a “liquidation” bankruptcy. It is known as such because the trustee assigned to the case can sell any nonexempt or unprotected assets and pay the money to your creditors.

However, it is important to understand that most property is protected by an exemption under state law. When an asset is exempt, a bankruptcy trustee cannot take the property. In Chapter 7 bankruptcy, most debts are wiped out.

What Does The Chapter 7 Bankruptcy Process Look Like?

The purpose of filing a Chapter 7 bankruptcy is to discharge a debt or to cancel some debtor obligations (although it is important to understand that some debts cannot be discharged in a Chapter 7 bankruptcy). Once a Chapter 7 bankruptcy has been filed, the debtor will immediately be protected against attempts by the creditors to collect on the debts.

Here is basically how the process works:

  1. Approximately four to six weeks later, the debtor will have to attend a court hearing known as a “meeting of the creditors.” Although it is referred to as a “meeting of the creditors,” it is usually rare for an actual creditor to attend this meeting and ask the debtor questions (because the creditors are unable to contact the debtor after Chapter 7 bankruptcy has been filed, this is their opportunity to address the debtors and ask questions).
  2. The “meeting of the creditors” is conducted by a trustee. The trustee is not a judge but is an official appointed by the court to oversee the meeting and to ask the debtor a series of questions.
  3. The debtor’s attorney will also be present at this meeting, and the attorney will prepare the debtor with the questions that can be expected to be asked at this proceeding. This process usually only takes a few minutes.
  4. After the meeting, the bankruptcy case will conclude approximately 60 days later.

As your attorney, I will represent your interests. I will also offer personal attention to you and your case. As a sole practitioner, I offer flexible and accessible bankruptcy representation. Chapter 7 bankruptcy is the best way to move forward quickly. However, some people earn too much to qualify. If this is the case, I can assess whether a Chapter 13 bankruptcy filing is right for you.

Get Your Questions Answered

I want to ensure that you get all of your bankruptcy questions answered. This is part of the reason I offer a free consultation. It is your opportunity to ask questions, get to meet me and gain a stronger understanding of the process. Call 712-847-5882 or send me a brief email summary of your situation, and I will get in touch with you.

I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.