What is a chapter 7 bankruptcy case and how does it work?
A chapter 7 bankruptcy case is a proceeding under federal law in which the debtor seeks relief under chapter 7 of the Bankruptcy Code. Chapter 7 is that part (or chapter) of the Bankruptcy Code that deals with liquidation. The Bankruptcy Code is the set of federal laws that deal with bankruptcy. A person who files a chapter 7 case is called a debtor. In a chapter 7 case, the debtor must his or her non-exempt property, if any exists, over to a trustee, who then converts the property to cash and pays the debtor’s creditors. In return, the debtor receives a chapter 7 discharge, if he or she pays the filing fee, is eligible for the discharge, and obeys the orders and rules of the bankruptcy court.
Related Questions
- I filed a Chapter 7 Bankruptcy case within the last 8 years, but again or still have debt I need help with. Can I file a Chapter 13?
- How do you remove recorded judgements after Chapter 7 bankruptcy case is discharged and closed?
- What is the difference between a Chapter 7 bankruptcy case and a Chapter 13 bankruptcy case?
