Chapter 7 Bankruptcy Information
The bankruptcy laws of the United States of America are contained in the 11th Title of the United States Code. This title has a number of chapters, which deal with different bankruptcy issues, and under which petitions for bankruptcy can be brought. One of these chapters is chapter 7, which enables the debtor to pay off debts that he would originally not have been able to. When looking at the chapter 7 bankruptcy information, it is essential to study the exact wording of the chapter.
Under chapter 7, the entire debtor’s non-exempt property is sold, and the proceeds are distributed among the different creditors. Therefore, under this chapter, creditors are only given what the debtor’s property is worth. Many bankruptcy petitions have been filed under this chapter, because it gives the debtor a very quick relief and solution to their credit problem. In many cases, by the time debtors decide to file for bankruptcy, they have little or no assets left to sell. Therefore, once a petition is brought under chapter 7 of the bankruptcy code, the little assets left are sold off and the proceeds distributed among the various creditors.
Under chapter 7 bankruptcy information, upon filing for bankruptcy, a trustee is appointed and all property of the debtor vests in him. It is, therefore, up to the trustee to collect the property, organize for its sale and then distribute the proceeds of such sale to the creditors. Petitions for bankruptcy are usually brought under this chapter, because the debtor is not required to handle any matters as far as sale of the property is concerned. In addition, the debtor is also not expected to pay the trustee. Chapter 7 bankruptcy information filing is, therefore, the best for debtors who are neck deep in debt and have very little assets left.
In most cases, petitions under chapter 7 are brought about by the debtors, however, in some instances; creditors have also been known to bring chapter 7 bankruptcy petitions. This petition is referred to as an involuntary chapter 7 petition for bankruptcy. The petition is brought about by a joint effort of all creditors who feel that the debtor will not be able to pay them their money.
Important chapter 7 bankruptcy information is that, a petition presented under the chapter cannot give companies or corporations a discharge from payment of debts. Once a company presents such a petition, it is automatically dissolved, since all its assets are subject to sell. On the other hand, individuals who file for bankruptcy under this chapter can receive a discharge of all debts. In addition, the individuals are also allowed to keep some property, which is referred to as exempt property. This property is not subject to bankruptcy and cannot, therefore, be sold off. Such property includes car loans and mortgages among others.
From the above, it is noted that, chapter 7 bankruptcy is the commonest type of bankruptcy in the United States of America. This is because; it provides a quick relief to both debtors and creditors.
The bankruptcy laws of the United States of America are contained in the 11th Title of the United States Code. This title has a number of chapters, which deal with different bankruptcy issues, and under which petitions for bankruptcy can be brought. One of these chapters is chapter 7, which enables the debtor to pay off debts that he would originally not have been able to. When looking at the chapter 7 bankruptcy information, it is essential to study the exact wording of the chapter.
Under chapter 7, the entire debtor’s non-exempt property is sold, and the proceeds are distributed among the different creditors. Therefore, under this chapter, creditors are only given what the debtor’s property is worth. Many bankruptcy petitions have been filed under this chapter, because it gives the debtor a very quick relief and solution to their credit problem. In many cases, by the time debtors decide to file for bankruptcy, they have little or no assets left to sell. Therefore, once a petition is brought under chapter 7 of the bankruptcy code, the little assets left are sold off and the proceeds distributed among the various creditors.
Under chapter 7 bankruptcy information, upon filing for bankruptcy, a trustee is appointed and all property of the debtor vests in him. It is, therefore, up to the trustee to collect the property, organize for its sale and then distribute the proceeds of such sale to the creditors. Petitions for bankruptcy are usually brought under this chapter, because the debtor is not required to handle any matters as far as sale of the property is concerned. In addition, the debtor is also not expected to pay the trustee. Chapter 7 bankruptcy information filing is, therefore, the best for debtors who are neck deep in debt and have very little assets left.
In most cases, petitions under chapter 7 are brought about by the debtors, however, in some instances; creditors have also been known to bring chapter 7 bankruptcy petitions. This petition is referred to as an involuntary chapter 7 petition for bankruptcy. The petition is brought about by a joint effort of all creditors who feel that the debtor will not be able to pay them their money.
Important chapter 7 bankruptcy information is that, a petition presented under the chapter cannot give companies or corporations a discharge from payment of debts. Once a company presents such a petition, it is automatically dissolved, since all its assets are subject to sell. On the other hand, individuals who file for bankruptcy under this chapter can receive a discharge of all debts. In addition, the individuals are also allowed to keep some property, which is referred to as exempt property. This property is not subject to bankruptcy and cannot, therefore, be sold off. Such property includes car loans and mortgages among others.
From the above, it is noted that, chapter 7 bankruptcy is the commonest type of bankruptcy in the United States of America. This is because; it provides a quick relief to both debtors and creditors.