Chapter 7 Bankruptcy

If you are reading this, more than likely you have found yourself in an unsustainable debt situation, and you may be asking yourself:   How did I get here?  How am I ever going to find my way out?  What are my options? Or, am I just doomed to struggle to get my head above water?…

For many individuals or sole proprietors preparing to file for bankruptcy, Chapter 7 is the preferred choice. Filing for bankruptcy under Chapter 7 allows an individual or sole proprietorship business to discharge most debts in exchange for the liquidation of nonexempt assets, the proceeds from which are used to pay creditors. Not all assets must…

According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years. In his book Small Business Management, Michael Ames gives the following reasons for small business failure: •Lack of experience •Insufficient capital (money) •Poor location •Poor inventory management •Over-investment in fixed…

Chapter 13 bankruptcies provide an attractive alternative for wage earners and home owners who are seeking relief from temporary financial difficulties. Not everyone can or should file a Chapter 13 case. There are certain requirements relating to income which must be met, i.e., the Debtor must have regular income.  Chapter 7 bankruptcy may be a…

With regard to Chapter 7 bankruptcy cases specifically, attorney fees owed to the Debtor’s counsel for services prior to filing the case must be paid before filing your Chapter 7 case. The reason for this is simple: once the Chapter 7 action is filed, any outstanding debts may be subject to discharge. Accordingly, bankruptcy attorneys,…

Chapter 7 bankruptcy actions give debtors who complete such a case a chance to get a fresh start financially by obtaining discharge of overwhelming debts which prevents such debtors from staying current with their monthly bills. These cases entail a process where the bankruptcy trustee appointed by the court uses funds gained from liquidating the…

n the prior post in which the topic of bankruptcy discharges in Chapter 7 cases was discussed, it was mentioned that some debts cannot be discharged via bankruptcy. This means that debtors will have to pay some, if not all of certain debts. The following kinds of debt are not subject to discharge: 1. Child…

Generally when someone abandons property, it is assumed that they have decided to leave their own property for someone else to take like a tenant who decides to leave their old lawn mower at their old rented home for use by the next occupant. The term “abandonment” in normal conversation conveys a sense that the…

Once you’ve decided that filing for bankruptcy is the right solution for your financial dilemma, it’s time to choose which type of bankruptcy is appropriate. For most individuals or small business owners, the most obvious choices are Chapter 7 or Chapter 13 bankruptcy. The choice between these two chapters will ultimately depend on your own…