Chapter 7 Bankruptcy

Overview

Chapter 7 bankruptcy is the type most often filed. It is sometimes referred to as "straight bankruptcy" or "liquidation bankruptcy." Under Chapter 7, your qualifying debt, which includes credit cards, medical bills, etc., will be wiped out giving you a fresh start. In Chapter 7, there is no repayment required. You will turn over any non-exempt property that you own to the bankruptcy trustee. The non-exempt property will become part of your bankruptcy estate and be liquidated to pay your creditors. Most persons who file chapter 7 bankruptcy will keep all of their possessions. A Bankruptcy Lawyer can help guide you through the process and explain what property is exempted from the bankruptcy estate. The entire process usually takes less than four months to complete.

The Chapter 7 Process
Typically, you will only have one meeting with the bankruptcy trustee during your Chapter 7 Bankruptcy case. During that meeting, creditors are given a chance to question you about your financial circumstances. The bankruptcy trustee can also ask questions about your petition, generally these will focus on income or assets. It is rare that a creditor will show up and the meeting is mostly handled by attorneys. The meeting will likely take just a few minutes. It is normal to feel some anxiety about the meeting, but there is no reason to fear the bankruptcy trustee. He/or she is not a judge. The meeting will be held in an informal setting, most likely a conference room or in the trustee’s office. Once you have attended the meeting, just keep your address current with the bankruptcy court and wait to receive your discharge in the mail.

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