Chapter 7 Bankruptcy

Upon filing a Chapter 7 bankruptcy case, all of the property which is owned by the Debtor filing the case is placed in to the bankruptcy estate. That estate is, during the course of the case, placed under the control of the Trustee. The bankruptcy court appoints a trustee in Chapter 7 cases to oversee…

In a previous blog post, the automatic stay feature of Chapter 7 bankruptcy is discussed. This provides the Debtor who files the Chapter 7 bankruptcy case to immediately enjoy protection from the bankruptcy court to the extent that creditors are enjoined from taking collection measures against the Debtor on their claims while the bankruptcy case…

It is difficult to find any other type of court action a person or entity can file in an American court which has the kind of effect the automatic stay has in bankruptcy cases, including Chapter 7 actions. This feature of Chapter 7 cases makes the idea of filing such a case particularly attractive. What…

Not everyone who finds themselves in a condition of financial distress can necessarily file a Chapter 7 bankruptcy case. Regular wage-earners who clearly want to stay in the home they own may be better suited for Chapter 13 and consider that option. For other individuals they should determine if they meet the eligibility requirements for…

The decision to file for bankruptcy protection under Chapter 7 is a serious one which should only be made after serious consideration and thought as well as consultation with a local bankruptcy attorney. Once a person concludes that Chapter 7 bankruptcy will offer the chance to get a fresh start financially, the next step is…

Previously we discussed in a recent blog post the use of the homestead exemption by Debtors in Chapter 7 bankruptcy cases to protect the equity they have in their home. This particular exemption is but one of several which the State of New Mexico allows Debtors in this state to claim when filing for bankruptcy…

In late July, Ascendant Energy, a solar technology company based in Owls Head, Maine, filed for Chapter 7 bankruptcy. The company will not repay approximately $780,000 in debt, acquired mainly through loans and grants from the Maine Technology Institute and investment funds from Coastal Enterprises, Inc. The company’s founder, Chris Straka, secured a patent in…

After medical bills, credit card debt stands as a top reason individuals choose to file for Chapter 7 bankruptcy protection. Although many states have caps –New Mexico has a 50% cap on interest rates on credit card accounts – the level of these caps can leave cardholders in perilous financial condition. For those people considering…

PathoGenetix, a company working to identify pathogenic bacteria in food samples using its own patented genetic scanner, recently filed for Chapter 7 bankruptcy in the District of Massachusetts bankruptcy court. According to the company’s bankruptcy filings, PathoGenetix owes nearly $1.4 million to creditors and owns approximately $3.5 million in assets. On June 26, PathoGenetix’s board…

Before commencing any discussion of the relative merits of Chapter 7 bankruptcy versus Chapter 13 bankruptcy, it is necessary to underscore how important it is to discuss whether one should file bankruptcy to address financial issues with an experienced bankruptcy attorney and to listen to his or her advice on the best filing option for…