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| Chapter 7 Bankruptcy
What is a Chapter 7 bankruptcy case?
A bankruptcy case filed under Chapter 7 of the Bankruptcy Code is one in which certain of the debtor's assets are sold and the proceeds are used to pay creditors. The Code lets a debtor keep certain "exempt" property. But the rest of the debtor's property is sold to pay off creditors as specified under the Bankruptcy Code.
Who may file for Chapter 7 bankruptcy relief?
Chapter 7 debtors can be individuals, partnerships, corporations,
or other business entities. Individuals must first pass a means test and receive credit counseling from an approved credit counseling agency. Also, individuals who, during the last 180 days, had a prior bankruptcy petition dismissed due to their failure to appear or to comply with court orders may not file
for bankruptcy relief. Debtors may not file bankruptcy if they voluntarily dismissed, during the last 180 days, a prior bankruptcy case when creditors tried to recover property on which they held liens.
What is the purpose of Chapter 7 bankruptcy?
Basically, the main purpose for individual debtors is to give them a fresh start by discharging certain debts so that debtors are no longer liable for the discharged debts. Chapter 7 allows for individuals, not partnerships or corporations, to discharge debts. Also, certain types of debts are not dischargeable and liens on property are not extinguishable.
More questions? Click on this link to watch some videos about bankruptcy:
"Bankruptcy Basics" videos from the U.S. Courts
Bankruptcy Help
If you need help deciding whether to file Ch. 7 bankruptcy and you live in Hoboken, Jersey City, Union City, Weehawken, Edgewater, or other Hudson or Bergen County locations, feel free to call me at (646) 932-1053 or (201) 676-0722.
For More Information
Check out my other website, which has a bankruptcy blog:
Hoboken Bankruptcy Attorney
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