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What is a Chapter 7 case?

April 26, 2017Case chapter 7

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What is a Chapter 7 case?

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In a Chapter 7 case, a trustee is appointed to review your assets. The trustee will determine the fair market value of each of your assets, then subtract the amount of any liens on the asset, and subtract the dollar value of any exemptions you may claim on the property. If, after this calculation, the trustee determines that there is value to be realized for creditors, the trustee may sell the asset. In most cases, exemptions and liens make a sale of any assets prohibitive. A debtor will generally be discharged within 120 days after filing his or her case.