Chapter 7 bankruptcy is one of the most commonly filed chapters for consumer bankruptcies. It differs from Chapter 13 in that it lasts about four months, and requires liquidation of assets to repay creditors. The court appoints a trustee to oversee the case, and the trustee is in charge of verifying information in the petition along with selling any assets. The selling of the assets is to generate funds with which to repay creditors, although if there are no assets to speak of, it is still possible to file. It is best to discuss debt relief goals with a chapter 7 bankruptcy attorney in Chicago to learn if personal assets are at risk.
All chapters of bankruptcy require that a petitioner make some kind of attempt at repaying creditors. As previously mentioned, in Chapter 7, it is liquidation of assets. A trustee is looking for items of value that could not be exempted, such as expensive jewelry, cars with value or real property that is free of encumbrances. These items are surrendered to the trustee, and the trustee puts them up for sale. The money realized from the sale is then distributed to creditors in order of their importance.
But, what if someone has no assets to speak of? Even though someone is asset poor, they are still allowed to file for bankruptcy under Chapter 7. Even though the court would like to see some kind of repayment to creditors, it recognizes that this is not always possible. To that end, petitioners whose meager assets are exempted under the laws are still allowed to file. In these situations, the bankruptcy moves forward as usual, creditors have an opportunity to object, and the discharge is given on the set day in the event no irregularities arose.
Bankruptcy is best done with the help of legal counsel. There is a lot that can go wrong that can derail a bankruptcy, and make it more difficult for a petitioner to refile. Working with a chapter 7 bankruptcy attorney in Chicago minimizes the chances that something goes wrong. Having a lawyer makes the process that much less stressful, what with the lawyer taking on most of the necessary work to help their client. Browse the website to know more.