What is Chapter 7 Bankruptcy?
Named after the chapter detailing the law in the Federal Bankruptcy Code, Chapter 7 is also referred to as “straight” or “liquidation” bankruptcy.
Filing for and completion of a Chapter 7 bankruptcy takes on average 4 to 6 months. As part of the process you are required to list all of your property, income, living expenses, debts, former properties owned within the last 4 years, and payments made on debts to creditors within the last 90 days unless those creditors are friends or family- then it is one year.
Most people can exempt or keep all of their assets and still dump the debt.
Once you have filed for Chapter 7 bankruptcy, an “Order of Relief” is put into effect which stays or stops most, if not all, creditors from try to collect debts from you. While in the process of Chapter 7 bankruptcy, the court¬¨‚Ć and the court appointed trustee are in control of your assets and debts so you should not sell or transfer them without prior approval.
You will be ineligible for Chapter 7 bankruptcy if you have filed for chapter 7 bankruptcy within the last 8 years or if you are deemed to be financially capable of completing a Chapter 13 Bankruptcy repayment plan. Once the case is filed, a ” Trustee‚Äö√Ñ√π will be appointed to versee your case and to liquidate any non exempt assets for the benefit of your creditors.
When your Chapter 7 bankruptcy case has been discharged most of your debts are dumped- forever. Some debts which are not discharged are some tax debts, student Loans, child support and alimony. Another type of non dischargeable debts are those incurred by fraud.
Call us today at 808-585-1000 for a free no obligation consultation. Dump the debt and get a fresh start.
We file bankruptcies on all the Hawaiian Islands, Oahu, Big Island, Maui and Kauai. Find out what we can do for you today!