Home

Legal Categories

Attorneys

Business Law

Class Action Lawsuits

Civil Rights

Consumer Protection Law

Construction Law

Criminal Law

Drunk Driving

Drug Trafficking

Education Law

Elder Law

Identity Theft

Immigration Law

Intellectual Property

Labor Law

Lemon Law

Lawsuits

Negligence Law

Product Recall

Sexual Harassment

Stalking

Statue of Limitations

Taxes & the IRS

Wills

Arbitration

Legal Aid

Chapter 7 Law

Share |

Bankruptcy system presides over the process of liquidation under the bankruptcy laws of the United States. Chapter 7 is also known as the straight bankruptcy in the United States. The debtor turns over all non-exempt possessions to the bankruptcy trustee who then transforms it to cash for distributing it to the creditors. It is the quickest, simplest and the foremost process of liquidation by which debtors are feed from their debts and creditors are paid off with their payments. Within four months, the debtor is discharged from all his debts. In most cases, the debtor is left with no assets to lose therefore chapter 7 will render a quick and a fresh start. Debtors should also have knowledge about the alternatives to Bankruptcy chapter 7 relief. For example, debtors who are occupied in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation.

Businesses filing Chapter 7

When an anxious business is poorly in debt and incapable to overhaul that debt or pay its creditors, it may file for bankruptcy in a federal court 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 almost immediately. The Trustee generally sells all the assets and distributes the proceeds to the creditors.
Individuals filing Chapter 7
Individuals can file for bankruptcy in a federal court under Chapter 7 ("straight bankruptcy", or liquidation). In a Chapter 7 bankruptcy, the individual is allowed to keep certain excused possessions.

How Chapter 7 Works
1.A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. In addition to the petition, the debtor must also file with the court: schedules of assets and liabilities.

2.A schedule of current income and expenditures.
3.A statement of financial affairs; and
4.A schedule of executor contracts and unexpired leases.

Chapter 7 Discharge
Approximately three months following the meeting of creditors, the individual consumer debtor can typically expect to receive a discharge. The discharge is a court order which extinguishes the debtors legal obligation to repay many unsecured debts that cannot be paid by the trustee. Unsecured debts may generally be defined as money obligations based solely on future ability to pay. Secured debts, on the other hand, are based on a creditors right to repossess pledged property upon default, regardless of a debtors ability to pay. Certain debts -- such as sales taxes and other trust-fund taxes, debts created by a debtors intentional conduct, parking violations, fines, penalties and criminal restitution, alimony and child support obligations, and guaranteed student loans, among other substance are not discharged in most cases and are unchanged by a Chapter 7 bankruptcy filing. For Expert consultation on Bankruptcy Law you can, take advice from Bankruptcy Lawyer or Bankruptcy Attorney in your area.

Popular Tags

Object reference not set to an instance of an object.

Above Information might be usefull for all the states in US & Canada as below;

Alabama(AL), Alberta(AB), Arizona(AZ), Arkansas(AR), British Columbia(BC), California(CA), Colorado(CO), Connecticut(CT), Delaware(DE), District of Columbia(DC), Florida(FL), Georgia(GA), Hawaii(HI), Idaho(ID), Illinois(IL), Indiana(IN), Iowa(IO), Kansas(KS), Kentucky(KY), Louisiana(LA), Maine(MN), Maryland(MD), Massachusetts(MA), Michigan(MI), Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada(NV), New Hampshire(NH), New Jersey(NJ), New Mexico(NM), New York(NY), North Carolina(NC), North Dakota(ND), Ohio(OH), Oklahoma(OK), Ontario(ON), Oregon(OR), Pennsylvania(PA), Rhode Island(RI), South Carolina(SC), South Dakota(SD), Tennessee(TN), Texas(TX), Utah(UT), Vermont(VT), Virginia(VA), Washington(WA), West Virginia(WV), Wisconsin(WI), Wyoming(WY)

Note: The information provided on LegalSuggest.com may be provided by third parties. The owners and operators of this site do not guarantee the correctness, completeness, and compliance of the content on this site. Such content is not and shall not be deemed tax, legal, financial, or other advice, so we encourage you to validate the accuracy of the content. Your use is at your own risk, and use of this site shall be deemed approval of the above.

vBulletin analytics