Chapter 7 Bankruptcy and What It Will Do For You
March 26, 2010 11:08 am BusinessWe have all heard the term bankruptcy before and have an idea of what it means, that is all the details that are the most important here. The issue of bankruptcy is one that many people find confusing. It is hard enough to keep your finances on track most of the time, let alone worrying about such a serious issue as Bankruptcy. If you find that you are in financial trouble and there is no other way out however, bankruptcy may be the answer for you in your case.
One of the most important issues of all on the topic of the bankruptcy code is that of Chapter 7 bankruptcy. There are actually quite a few different chapters which are included in the bankruptcy code, which Chapter 7 bankruptcy by far being the one most used. In a Chapter 7 bankruptcy a trustee is appointed to collect all nonexempt property, and sell the assets and distribute the proceeds from the sale to appropriate creditors. Chapter 7 is different from all other bankruptcy filings because the debtor does not make a payment to the trustee. Even though in some cases this would mean that you would lose all your assets, this need not always be the case. When filing Chapter 7 bankruptcy, the debtor receives a discharge on all dischargeable unsecured debts. There are different classes of debt, such as child support, most taxes and student loans which might not be dischargeable under Chapter 7 bankruptcy, but realistically there is much more that can be discharged.
