Filing under Chapter 7 represents a fresh financial start for the petitioner, more than any other chapter in the U.S. Bankruptcy Code. Chapter 7 is known as the “Liquidation Bankruptcy” – the nonexempt assets of the debtor are sold off, or liquidated, and distributed to creditors (assuming there is something to be distributed). The debtor is discharged of any obligation to pay the remaining debts. There are some exceptions, though, such as current child support obligations and spousal support (alimony), both of which are nondischargeable debts in bankruptcy proceedings. When deciding which chapter to file you may notice there are a number of different options mentioned online. Some of these can include Chapter 7, 11, 13, and Chapter 20.
An individual, corporation, limited liability company, or partnership can file a petition for bankruptcy relief under Chapter 7. Both husband and wife may file a joint petition or one spouse may file individually.
The Chapter 7 bankruptcy petitioner must also satisfy the following requirements:
As you will discuss with your attorney in a Pew Law Center bankruptcy, the discharge of debts is the goal of an individual who files for bankruptcy relief under Chapter 7. While the individual debtor keeps his or her exempt property, the discharge relieves the debtor of any legal obligation to pay back most or all of the debts – discharged debts are wiped out!
The Chapter 7 bankruptcy procedure may be completed in several months and is the swiftest, least complicated form of relief available when compared to Chapter 13 individual debt adjustment and Chapter 11 reorganization, both of which involve court-approved monthly payment plans that can continue for several years.
When the debtor is not an individual, but is a partnership, corporation, or limited liability company, a discharge is not available. Instead, the bankruptcy case is closed following the dissolution of the business organization.
If you are contemplating filing for bankruptcy in Phoenix, the Pew Law Center, PLLC, provides personalized service when you need it most. We have helped more than 2,000 area residents eliminate over $100 Million in debt through the filing of Chapter 7, Chapter 11, and Chapter 13 bankruptcies.
For more information about the Pew Law Center, contact our offices to schedule a FREE VIP Bankruptcy Consultation. When you meet with us, we listen to your problems and take the time to understand all of your concerns. After we’ve had an opportunity to review your financial situation, we will clearly identify your debt relief options. From there, we will plan the best strategy based on the most pressing matters specific to your financial situation, including creditor lawsuits, home foreclosure, car repossession, and creditor harassment.
Call us at (480) 745-1770 today and speak with a friendly representative of our legal team.
Pew has been an awesome firm to work with. They are very sensitive, even through a bankruptcy that was complicated by a decision to divorce in the middle of it. They are rofessional and efficient, but equally personable and a joy to work with. I could not ecommend them more highly!
Call (480) 745-1770 or fill out our contact form to get help from compassionate professionals. Stop worry and get help today.