Chapter 7 Bankruptcy

A Chapter 7 Bankruptcy is sometimes referred to as a straight liquidation.  The process begins by filing a voluntary petition with the Clerk of the Bankruptcy Court.  With limited exception, the automatic stay begins once the bankruptcy petition is filed.  The automatic stay is an injunction that tells creditors to stop attempting to collect any debt from you outside of the bankruptcy process.  This means that all telephone calls and letters should stop immediately.

Within 60 days of the filing of the bankruptcy petition, you will be required to attend one hearing called the 341a Meeting of Creditors.  The hearing is run by the Bankruptcy Trustee assigned to your case.  After the Meeting of Creditors, Debtors complete a post filing financial management course.   Provided everything is in order, the Bankruptcy Trustee releases the property of the Bankruptcy Estate back to the Debtor, and the Debtor receives a discharge.

Determining whether you qualify to file a Chapter 7 Bankruptcy is a complex inquiry.  Call us for your free consultation to discuss what options may be available for you.