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Chapter 7 bankruptcy is utilized by persons who wish to
eliminate their debt and obtain relief from future obligation regarding
those debts. In a Chapter 7 bankruptcy, the debtor requests that
the Court liquidate all non-exempt property to pay creditors. In
addition, the debtor may choose to remain in possession of items such as
homesteaded property or an automobile.
The entire Chapter 7 bankruptcy process takes
approximately four to six months to complete. There is a filing fee.
It is recommended that you obtain an up-to-date copy of
your credit report prior to filing bankruptcy.
Filing bankruptcy places into effect an automatic
stay. This immediately stops your creditors from attempting to collect
on your debt. The automatic stay also stops garnishment and
foreclosure proceedings, at least temporarily.
The bankruptcy court appoints a Trustee to oversee your
case. The Trustee's main interest is any non-exempt assets
you own that may be liquidated in order to pay your creditors.
Shortly after filing the bankruptcy petition, you will be
notified of a Creditors' Meeting, which you must attend. This is a
brief meeting conducted by the Trustee to determine whether you have any
assets which may be seized or surrendered.
Generally, secured debts, such as homesteaded
property and motor vehicles, may be "reaffirmed" if you
continue making payments.
Some debts that are nondischargeable in bankruptcy are:
~ debts not listed on the bankruptcy petition
~ child support and alimony
~ student loans
~ income tax debt
After the bankruptcy process is over, most of your debts
will be "discharged" or wiped out, meaning you will no longer be
legally liable for payment of the discharged debts.
Attorney Services
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want to increase your in-house work force, Hopkins Paralegal can ease the
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