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CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy A chapter 7 bankruptcy case involves selling the debtor's nonexempt assets and uses the money raised from the sale of assets to pay creditors in accordance with the provisions of the Bankruptcy Code. The Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property. Limiting these losses requires expert knowledge of the Bankruptcy Courts.
Hagen & Hagen is a Florida Bankruptcy Law Firm that specializes in helping our clients navigate the maze of bankruptcy laws and bankruptcy court when filing. Our team of experienced bankruptcy attorneys are on your side before and after you file to protect your interests if you choose to enter into a Chapter 7 proceeding.
One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start." In a chapter 7 case, a discharge is only available to individual debtors, not to partnerships or corporations. Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.
A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. In addition to the petition, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a statement of financial affairs; and (4) a schedule of executory contracts and unexpired leases.
Having an experienced legal team is essential to protect your rights and limit the damage done by bankruptcy. Hagen and Hagen is prepared to provide you with the help you need to successfully navigate Chaper 7 proceedings.
