Chapter 7

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the type of filing that is most familiar to consumers. A chapter 7 bankruptcy, by definition, provides for the “liquidation” of a debtor’s property and the fair distribution of remaining proceeds to a filer’s creditors. Most people think that a consumer’s debts are liquidated, not their assets. In reality, a consumer is released from the responsibility of paying back certain debts after their eligible property has been liquidated.
There have been a great many changes in regards to eligibility requirements for chapter 7 bankruptcy recently. Credit counseling for consumers is now a mandatory requirement for all chapter 7 bankruptcy filers and under certain circumstances, you may not be able to file for a chapter 7 bankruptcy if you recently dismissed another bankruptcy case or failed to appear in court.
While chapter 7 allows to consumer to be released from paying back most debts there is no guarantee that all of your outstanding debts will be eliminated. In addition, creditors have an opportunity to voice their opinions in court as well.
While guidelines for filing chapter 7 bankruptcies have become a bit stricter, many clients are still able to qualify.
To find out if you are a candidate for a chapter 7 bankruptcy filing free of charge, call the Law Offices Marshall E. Rosenbach today at (310) 860-4764.