Often called debt liquidation, the chapter 7 bankruptcy is the bankruptcy that most people have heard of prior to coming into my office. In a typical chapter 7, a person files paperwork with the Court and their property is protected from typical creditor actions. However, a trustee is appointed to review whether or not that person has any things that can be sold or liquidated to pay into the bankruptcy estate that is distributed to all of their creditors. Typically a person can take advantage of the state’s asset protection laws, called exemptions, in order to protect the property that they have. Typical exemptions include:
• Household goods
• Homestead (real estate)
• Life insurance
• Burial Plots
Not every person is eligible to qualify for chapter 7 bankruptcy. Sometimes a person may not qualify for a chapter 7 because they have filed a chapter 7 too recently in the past. Sometimes a person may have a piece of personal property that will be taken by the trustee. Often times a person may not be able to file chapter 7 because their income is too high. Other times it just may not be in the person’s best interest to file for chapter 7 or bankruptcy at all. If you are unable to file for chapter 7 bankruptcy, a chapter 13 bankruptcy may be a more suitable option.
You may schedule an appointment to meet with Attorney Christopher S. Owen at Owen Legal Services to discuss your bankruptcy options, and to discuss whether you qualify for Chapter 7 bankruptcy, and how best to protect your property.