CHAPTER 7
Chapter 7 is sometimes called a "liquidation" or "straight" bankruptcy. In Chapter 7, a business or consumer debtor obtains a discharge of all debts after a Bankruptcy Trustee [appointed by the court] either liquidates the debtor's assets to pay creditors or determines that the debtor has no assets to pay creditors.
Debtors in bankruptcy want one thing: to obtain a discharge of their debts. A discharge is an order of the bankruptcy court stating that the debtor is released from debt, such as a credit card bill. In other words, the debt is wiped out and the debtor no longer owes the creditor any money.
In general, you may keep your car in Chapter 7 bankruptcy if you wish to do so and you are current on your monthly finance payments. The new bankruptcy law imposes the requirement that you must now obtain a briefing from an approved nonprofit credit counseling agency within 180 days of your bankruptcy filing.
Under the new bankruptcy law, you will not be eligible to file a Chapter 7 bankruptcy if your income is above the median income of the state in which you live, and you can afford to pay a certain amount of your credit card bills. In addition, a Chapter 7 debtor’s discharge will be denied if the debtor received a Chapter 7 or 11 discharge in a previous case filed within 8 years of the current case.
Only a qualified attorney should be consulted with regard to the above provisions prior to filing for bankruptcy. The Law Offices of Keith F. Carr can determine your eligibility for a Chapter 7.