What is Chapter 7 Bankruptcy?
A Chapter 7 Bankruptcy case or a "liquidation case" may be filed by an individual or a business entity. In a Chapter 7 Bankruptcy case, all of the debtor's property is collected and valued by the Chapter 7 trustee. Any non-exempt property is sold by the Chapter 7 trustee to pay creditors. After this process is complete, the debtor receives a Chapter 7 discharge, i.e., the debtor will no longer owe creditors anything. Some debts including domestic support obligations and student loans are not eligible for discharge in bankruptcy. A... Continue reading