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learn about filing a chapter 7 bankruptcy
What is Chapter 7?
In a nut shell, Liquidation.
Chapter 7 provides protection from creditors who legally file for bankruptcy. It is a liquidation of the debtors non-exempt assets (if they have any), which are then sold by the chapter 7 trustee and the funds then distributed to the creditors in compliance to the Code.
In 2005 the Bankruptcy Code enacted the Bankruptcy Abuse Prevention and Consumer Protection Act. A “means test” was established to determine a debtor’s eligibility to file a chapter 7 bankruptcy. If the applicant’s income is in excess of a certain threshold that applicant is not eligible to relief under a chapter 7 bankruptcy.
Chapter 7, usually is the most simple and the quickest form of bankruptcy. This process usually takes three to four months to complete and be discharged of debts. With this said, it can take longer if your creditors object to your discharge.
It is available to:
- Individuals
- Married Couples
- Corporations
- Partnerships