BANKRUPTCY (Chapter 7)

Chapter 7 (liquidation) is the type of bankruptcy which is used when you do not have the ability to pay for your existing debts. If you file under this chapter, a trustee will likely be appointed and placed in legal possession and control of your assets to be sold and the funds obtained will be used to pay off your creditors.

Much, if not all of your property may be kept when you file a bankruptcy. Bankruptcy law lets individuals keep certain property that is not subject to attachment and execution under state or federal law. These assets include, but are not limited to, some of the equity in a debtor's homestead, household goods, household furnishings, a vehicle, unmatured life insurance contract, and some other assets. There are specific limits that you can claim as to the value of the exempt property. If you have equity in any assets that are not exempt under federal or state law, the appointed bankruptcy trustee can sell these assets and distribute the proceeds to your creditors.

Filing for bankruptcy and determining which chapter to file under can be complex. By retaining the attorneys at Jeffrey S. Posin & Associates, you will be providing yourself with experienced professionals who can help you through a process that can otherwise be very difficult and confusing.

When you file a bankruptcy petition, you will be required to prepare several forms that list all of your assets and liabilities. You will be required to disclose your current income and expenses. You will be required to answer numerous questions regarding your financial affairs and condition. You will have to account for any transfers of your assets that you have made within the year preceding your bankruptcy filing.

After the Bankruptcy Petition is filed, a bankruptcy trustee, particularly in Chapters 7 and 13, may be appointed to administer your case. If a trustee is appointed, the trustee is placed in legal possession and control of the Debtor's assets.

You are required to provide all of your creditors with a form that contains notice that you have filed for bankruptcy. In addition to giving your creditors notice of the bankruptcy filing, the form advises your creditors of certain things that they may not do during your case and will also advise them of your 341 Meeting. At the 341 Meeting, the Assistant United States Trustee conducting the meeting with ask you (the Debtor) a series of questions under oath, and will request that certain written documents be provided, such as proof of insurance, copies of bank statements, copies of your last federal tax returns. The meeting may also include the election of a trustee or of a creditors' committee. Any interested party may appear at the meeting of creditors and ask questions of the Debtor relating to your assets, financial conditions, and conduct of business.

Chapter 7 bankruptcies are handled quickly and will require an initial meeting with the trustee and a discharge hearing.

Chapter 7 | Chapter 13