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.  The discharge will be  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….

Chapter 7 and Chapter 13 Many times I stress to clients that bankruptcy law allows you to save your car or house.  But bankruptcy law also can be used to surrender items that you no longer wish to pay for.  Outside of bankruptcy, you may mean well by surrendering a vehicle that you can no longer afford. However, the lender will proceed to sell…