Chapter 7 bankruptcy can be used by business entities for an orderly winding-down of the business, but is most often employed by individuals. Unlike Chapter11 and Chapter 13, this form of bankruptcy proceeding results in a liquidation of the majority of the debtor’s assets, with the proceeds going to pay creditors.
Chapter 7 includes, for debtors, the right to exempt certain property from liquidation, most often including a primary residence, clothing, residential furnishings, and personal effects. The end result of a Chapter 7 case for individuals is typically to discharge some debts entirely or in part, giving the debtor a fresh start.
Chapter 7 cases now require individuals to have participated in credit counseling prior to fling for bankruptcy protection, and not all debts are dischargeable.
The bankruptcy attorneys at Davidson Law Firm are the best resource if you are having financial troubles and think that bankruptcy may be an option, or if you are a creditor in need of Chapter 7 representation. Our bankruptcy attorneys are well-versed in Chapter 7 proceedings, and discuss with our clients the particulars of each case, including whether or not a particular debt is subject to discharge or payment in bankruptcy.
Please contact Davidson Law Firm for more information about Chapter 7, or any type of bankruptcy proceeding. Even in those tough times when bankruptcy protection becomes a reality, Davidson Law Firm hopes to make the experience—for debtors and creditors alike—less painful and more successful.