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Chapter 7 Bankruptcy · Liquidation

Both individuals and businesses may find themselves with more debts than they can pay when due. In such cases, filing for bankruptcy may provide a solution to what seems like an insurmountable problem. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A bankruptcy lawyer’s goals are to help Chapter 7 debtors make a fresh start and ensure that creditors are paid.

A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment. In Chapter 7 the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets. Learn more of the details in fine for Chapter 7…