 |
|
Chapter 7 Bankruptcy
What is chapter 7 Bankruptcy ?
It is a liquidation proceeding, wherein the debtor turns over all non-exempt property to the bankruptcy trustee who then converts it into cash for distribution to creditors. Within four months, the debtor would have a discharge of all dischargeable debts. Chapter 7 bankruptcy is widely considered a “fresh start” because the debtor has no assets to lose.
It is also sometimes known as a straight bankruptcy.
One of the aims of this chapter 7 bankruptcy law is to give the hopelessly burdened debtor a fresh lease on life. If there is genuinely no way for the debtor to make the repayments consistently and timely enough to actually get out of debt, then the person is given a second chance by wiping out the existing debts.
|
|
|
|