Bankruptcy Chapter 7 Information

Chapter 7 Bankruptcy, sometimes called a fresh start, is a liquidation proceeding for both individuals or businesses hopelessly mired in debt and possibly facing foreclosure. All non-exempt property of the debtor is turned over to the bankruptcy trustee. If there are substantial assets the trustee converts those to cash and distributes it to the debtor’s creditors. The debtor receives a discharge of all dischargeable debts in approximately 4 to 6 months. In most cases filed the debtor has no assets and the proceeding is a fairly straightforward and quick process.