Chapter 7 Bankruptcy

Chapter 7 Chapter 13 Bankruptcy .org
Bankruptcy Information

Chapter 7 Bankruptcy

>  Bankruptcy Strategies - Claiming Maximum Benefits Under Ch 7 & 13

>  Dump That Debt! Proven Debt Reduction System

>  Number 1 System To Fight Debt Collector Lawsuits

>  Do It Yourself Credit Repair Ebook - A Guide To Repairing Your Credit



From Executive Director

If you want to know what Chapter 7 bankruptcy is and how it can help you with your financial difficulties and problems, then this page is for you.

Title 11 of the US Code is labeled Bankruptcy and Chapter 7 of Title 11 is labeled “Liquidation”. So, when someone files bankruptcy under the laws, rules, and regulations of Chapter 7 we call it a Chapter 7 bankruptcy.

Chapter 7 is labeled “Liquidation” because it is the type of bankruptcy where the Chapter 7 bankruptcy trustee will sell your property that he, the trustee, is allowed to sell (he is not allowed to sell everything) and then and distribute the net sale proceeds to your creditors.

Note: A Chapter 7 bankruptcy is generally not as bad as it sounds because the trustee is not allowed to sell all of your property. There are 2 reasons: (1) you are allowed by law to exempt certain property from the bankruptcy, and (2) you must have some equity in your non-exempt property or else the trustee cannot sell the property and get money to distribute to your creditors. Property that is exempt cannot be sold or touched by the trustee. Property that has little to no value or has little equity will not be sold by the trustee because, after deducting the cost of the sale, there will not be any money to distribute to your creditors. The only reason to sell property is to obtain money to pay to your creditors.

The way a bankruptcy Chapter 7 works is that when you file bankruptcy, even though you keep possession of your property and continue to use it, you technically turn all of your property over to the Chapter 7 bankruptcy trustee. The bankruptcy trustee will review what property you have, what are your debts, and your financial data. There will be what is known as a 341 Meeting when you meet with the bankruptcy trustee and creditors and they may ask questions.

If the Chapter 7 bankruptcy trustee finds that all of your property is exempt or that there is not enough value in your non-exempt property to sell and obtain money to distribute to your creditors, then the trustee will declare your case to be a “no asset” case and the bankruptcy is essentially ended.

If the Chapter 7 bankruptcy trustee finds that you have property that is not exempted from bankruptcy and that the property has value, the trustee will sell the non-exempt property.
Remember, the non-exempt property has to bring in enough money from a sell to pay for the cost of the sale, pay any liens or mortgages against the property, and have enough money left over to pay to your creditors. After the property is sold, the trustee will distribute the net proceeds from the sale(s) to your creditors and the bankruptcy will be ended.

If everything is done properly, when the bankruptcy Chapter 7 is ended, your unsecured debts will be discharged - meaning that you will not have to pay them. You will still have to pay your secured debts such as your house payment or car payment in order to keep the property that secures the debt. If you do not pay your secured debts, then your secured creditors can seek to recover the property that was put up as collateral to secure the debt’s payment.

As you can see, one way Chapter 7 bankruptcy can help you is to get rid of unsecured debts such as credit card or medical bills and to make it easier for you to pay your secured debts such as home or car payments. It is much easier to pay living expenses when you do not have to pay unsecured creditors.

Another way Chapter 7 bankruptcy can help you is that, when you file bankruptcy, there is a legal automatic stay that stops most civil efforts to collect money from you. This means that most bill collectors must stop all collection actions including calling or writing you trying to collect. If you are being sued, most law suits are put on hold. Your creditors may ask the bankruptcy court to lift the stay, and the court may or may not lift the stay, but most of your creditors cannot proceed with collection until the stay is lifted. Some civil cases such as family support actions and certain other civil cases and criminal actions against you are not affected by the automatic stay.


This is general information only. If you have any questions whatsoever, talk with a lawyer licensed in your state who has experience with Chapter 7 bankruptcy, Chapter 13 bankruptcy, or bankruptcy in general.

Bankruptcy Questions - Ask Your Own General Bankruptcy Questions

Please use this form for your bankruptcy question(s). Your name and email address are required so that we can email you an answer.

Name:

Email:

Question(s):



Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are 
 federal laws to give people a fresh financial start.

Learn More

Chapter 7 Bankruptcy

  Chapter 7 Bankruptcy
  Bankruptcy Exemptions
  Chapter 7 Means Test
  Chapter 7 Trustee
  Reaffirmation

Chapter 13 Bankruptcy

  Chapter 13 Bankruptcy
  Chapter 13 Qualifications
  Chapter 13 Plan
  Chapter 13 Trustee
  Cram Down

Bankruptcy Information

  Bankruptcy Information
  Benefits Of Bankruptcy
  How Does Bankruptcy Work
  Chapter 7 vs Chapter 13
  Automatic Stay
  341 Meeting
  Bankruptcy Discharge

Filing Bankruptcy

  Filing Bankruptcy
  Cost Of Filing Bankruptcy

Bankruptcy FAQ

  Can I File Bankruptcy
  Can One Spouse File Bankruptcy
  How Long Does Bankruptcy Take

  For recent FAQs, click here on Home Page


Bankruptcy News




To Easily Find This Site Later, Bookmark It By Pressing "Ctrl" and "D".

Do you have family or friends that need information on Chapter 7, Chapter 13, or bankruptcy? If yes,
please share this site with them by using this simple and private email.
Enter friend's email address:  



Disclaimer, Terms Of Use, and Privacy Policy

Chapter7Chapter13Bankruptcy.org is here to assist you in finding general information only. Legal advice is not given and nothing on this site should be considered to be legal advice. Chapter7Chapter13Bankruptcy.org, its owners, and/or employees do not endorse, recommend, warrant, or guarantee in any way whatsoever any information, product, or service mentioned in on Chapter7Chapter13Bankruptcy.org and are not liable in any way whatsoever for the use/purchase of the information, product, or service. By using Chapter7Chapter13Bankruptcy.org, you are agreeing to our Terms of Use and Privacy Policy.



Chapter 7 Chapter 13 Bankruptcy Home Page            Bankruptcy Questions


Copyright c 2011 Chapter7Chapter13Bankruptcy.org. All rights reserved.
Chapter7Chapter13Bankruptcy.org is the home of answers and information on chapter 7 bankruptcy, bankruptcy chapter 7, chapter 7, and chapter 7 bankruptcy information.