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The main goal under any filing in
bankruptcy is to give one who is burdened with debt a fresh start.
A Chapter 7 Bankruptcy
is the most common form of bankruptcy filing, accounting for over 65%
of all Consumer Bankruptcy filings.
A filing under Chapter 7 Bankruptcy is
often called liquidation or a straight bankruptcy. Liquidation
converts one's assets to money. This process involves the appointment
of a trustee.
A trustee collects all non-exempt
property, sells the assets and then distributes the proceeds from the
sale to the appropriate creditors. However, unlike other bankruptcy
filings, a debtor does not make payments to the trustee.
Does this mean that you will lose your
assets? The answer depends on your particular situation. But in most
bankruptcy cases you will not lose any of your belongings.
If you feel that you may lose some of
your possessions, we recommend you get more details about Chapter 7
from the Easy Guide to
Bankruptcy. |
