What Is Ch. 7 Bankruptcy?
Chapter 7 bankruptcy is a type of bankruptcy that involves the liquidation of a debtor’s assets to pay off their debts. It is also known as a “straight bankruptcy” or a “liquidation bankruptcy.”
Under Chapter 7 bankruptcy, a debtor must turn over all their non-exempt assets to a bankruptcy trustee, who will then sell the assets and use the proceeds to pay off the debtor’s creditors. Exempt assets are typically limited to things like personal property, tools of the trade, and certain types of retirement accounts.
To qualify for Chapter 7 bankruptcy, a debtor must pass a means test, which is used to determine whether they have the income to pay off their debts. If the debtor’s income is above a certain level, they may not be eligible for Chapter 7 bankruptcy and may have to consider filing for Chapter 13 bankruptcy instead.
After a debtor has completed the Chapter 7 bankruptcy process, their debts are discharged, which means that they are no longer legally obligated to pay them. However, certain types of debts, such as student loans, taxes, and child support payments, are not dischargeable in Chapter 7 bankruptcy.
Bankruptcy Attorney In Williamsburg Virginia
Montgomery, Kelley, & Dennett, P.L.C. provides services for Chapter 7 Bankruptcy. Filing a Chapter 7 can help end credit card debt, cease wage garnishments, stop foreclosures and repossessions.
The following are some of the services provided:
- Free initial consultation to see if you qualify for Chapter 7
- Preparation and filing of Chapter 7 Petition and Homestead Deed.
- Representation at 341 Hearing (Meeting of Creditors) in Bankruptcy court.