By Cara O'Neill, Esq.
A Chapter 7 bankruptcy is characterized by the following:
- Most debts are eliminated
- No payment plan
- Some property can be retained
- Some property may be sold to pay creditors
In a Chapter 7 bankruptcy, you are allowed to retain assets up to a certain dollar amount. These are called “exemptions.”
Anything over that amount must be surrendered to the trustee. He or she will sell the nonexempt property and divide the proceeds among the creditors.
The good thing about a Chapter 7 bankruptcy is that it takes approximately four-and-a-half months from start to finish, and once concluded, all of your dischargeable debts will be wiped out leaving you with a clean slate.
For people who meet the income requirements, this is often the best course of action, as compared to a Chapter 13 bankruptcy that requires a payment plan over a course of years.
Contact a bankruptcy lawyer, such as Cara O’Neill, Esq., to determine whether you qualify for a Chapter 7 bankruptcy today.
Tags: Chapter 7 Bankruptcy