Types of Bankruptcy: Chapter 7

Do you feel like your mountain of debt is building up? Are creditors coming after you and the money you don’t have? Do you just need the chance to start over, to begin afresh? Perhaps filing for Chapter 7 bankruptcy is the right option for you. Chapter 7 bankruptcy, also known as liquidation or debt-elimination bankruptcy, sells your nonexempt assets to help pay off your creditors.

How Chapter 7 Works

Under chapter seven bankruptcy, the court does not require an individual to devise and file a repayment plan. Instead, the court will usually appoint a trustee to your case to help you liquidate. This trustee will be in charge of selling your nonexempt property. Money from the sales goes towards paying off your debts. Although debts can be dissolved after filing for Chapter 7, this does not always happen, and it is not a guarantee for all of you debts.

Who Is Eligible?

Chapter 7 bankruptcy is written for an honest debtor. This can be an individual, partnership, corporation, or other business types. However, the chance to dissolve your debt usually only applies to individuals, and not business entities. Like with most other types of bankruptcy filings, a person must have submitted to credit counseling in the 180 days before filing for chapter seven.

There are instances when a filing for Chapter 7 can be dismissed because it is considered to be “abusing” the privileges of this liquidation bankruptcy. For example, if you make above the state median income, yet still file for debt-elimination bankruptcy, your request could be denied.

Contact Us

If you are being hounded by creditors, filing for Chapter 7 bankruptcy could be your best option for laying aside your problems. To make sure that you qualify for this type of debt-elimination bankruptcy or any other type of bankruptcy filing, contact the Milwaukee bankruptcy attorneys at the DeLadurantey Law Office today at 414-377-0518.