The least complex form of bankruptcy in the United States is Chapter 7. When an individual or a business reaches the point where they no longer can maintain payment of their debts, Chapter 7 bankruptcy gives them the opportunity to liquidate whatever assets they have and apply the proceeds of the liquidation to the creditors. Once this process has been completed the bankrupt can literally start over with a clean slate as all debts are discharged as a result of the action. All bankruptcy is complicated and it is advisable to have a Chapter 7 bankruptcy lawyer in Royal Palm Beach to provide you with guidance and assistance.
The whole process begins when the Chapter 7 bankruptcy lawyer in Royal Palm Beach files a number of documents with the bankruptcy court. The documents include statements to the effect that the petitioner is not eligible for filing a plan for debt reorganization or a repayment plan as well as a list of all assets. Once the court has reviewed the application for Chapter 7 and it is found that the debtor can file a liquidation bankruptcy a meeting of the creditors is scheduled. During this meeting the debtor and all the creditors have an opportunity to agree to partial repayment however, if a creditor feels that the debt owed him was obtained fraudulently then the creditor can refuse to accept a partial payment. There are certain debts such as student loans that must be paid in full; bankruptcy does not erase them.
The entire process takes between four and seven months to be completed and during this time the petitioner will want to be represented by a lawyer as the procedures can become quite complicated. During the procedure there are certain assets that the court will rule as being exempt, there are other assets are considered to be worthless, these too will be considered exempt. When assets are ruled exempt that means they cannot be sold. All eligible assets are put in the hands of a court appointed trustee who sells them, the proceeds are then allotted per the original agreement that was solidified at the creditors meeting.
The person who files for Chapter 7 bankruptcy is obliged to attend credit counseling after the process is completed. It will be very hard for the bankrupt to get credit for several years and anyone who files for Chapter 7 is ineligible to file again for a set period of time.
If you are in debt over your head and you have very few assets then filing for Chapter 7 bankruptcy may be for you. To discuss the ramifications you are advised to contact a Chapter 7 bankruptcy lawyer in Royal Palm Beach. You are invited to contact The Law Offices of Sean I. Koplow.
