Chapter 7 Liquidation in Plain English

Under Chapter 7, sometimes known as a liquidation, a bankruptcy trustee gathers and sells the debtor’s nonexempt assets, and uses the proceeds to pay holders of claims (creditors). In general, however, the majority of Chapter 7 cases are no-asset cases, in which...

Bankruptcy – When all is gone, not all is lost

Personal bankruptcy generally is considered the debt management option of last resort because the results are long lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life...

Chapter 7 Liquidation Under the Bankruptcy Code

Background A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors)...

Alternatives to Chapter 7

Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors...