BANKRUPTCY (Chapter 7)
7 (liquidation) is the type of bankruptcy which is used when you
do not have the ability to pay for your existing debts. If you file
under this chapter, a trustee will likely be appointed and placed
in legal possession and control of your assets to be sold and the
funds obtained will be used to pay off your creditors.
not all of your property may be kept when you file a bankruptcy.
Bankruptcy law lets individuals keep certain property that is not
subject to attachment and execution under state or federal law.
These assets include, but are not limited to, some of the equity
in a debtor's homestead, household goods, household furnishings,
a vehicle, unmatured life insurance contract, and some other assets.
There are specific limits that you can claim as to the value of
the exempt property. If you have equity in any assets that are not
exempt under federal or state law, the appointed bankruptcy trustee
can sell these assets and distribute the proceeds to your creditors.
bankruptcy and determining which chapter to file under can be complex.
By retaining the attorneys at Jeffrey S. Posin & Associates, you
will be providing yourself with experienced professionals who can
help you through a process that can otherwise be very difficult
file a bankruptcy petition, you will be required to prepare several
forms that list all of your assets and liabilities. You will be
required to disclose your current income and expenses. You will
be required to answer numerous questions regarding your financial
affairs and condition. You will have to account for any transfers
of your assets that you have made within the year preceding your
Bankruptcy Petition is filed, a bankruptcy trustee, particularly
in Chapters 7 and 13, may be appointed to administer your case.
If a trustee is appointed, the trustee is placed in legal possession
and control of the Debtor's assets.
required to provide all of your creditors with a form that contains
notice that you have filed for bankruptcy. In addition to giving
your creditors notice of the bankruptcy filing, the form advises
your creditors of certain things that they may not do during your
case and will also advise them of your 341 Meeting. At the 341 Meeting,
the Assistant United States Trustee conducting the meeting with
ask you (the Debtor) a series of questions under oath, and will
request that certain written documents be provided, such as proof
of insurance, copies of bank statements, copies of your last federal
tax returns. The meeting may also include the election of a trustee
or of a creditors' committee. Any interested party may appear at
the meeting of creditors and ask questions of the Debtor relating
to your assets, financial conditions, and conduct of business.
7 bankruptcies are handled quickly and will require an initial meeting
with the trustee and a discharge hearing.
7 | Chapter 13