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A Chapter 7 bankruptcy is also known as a liquidation bankruptcy because non-exempt assets are taken from the debtor and sold with the proceeds distributed to creditors based on their priorities. Those who seek Chapter 7 bankruptcy may lose some of their property in exchange for a discharge of debt. Debtors may file Chapter 7 if they... more »
Chapter 7 is the most common type of bankruptcy in the United States. It governs the liquidation of an individual or corporation's assets and, usually, the discharge of some debt. For a business, chapter 7 means the end of the line, the company is literally sold off in all its parts and its creditors paid to the extent possible,... more »
Chapter 7 bankruptcy is a court-enforced solution to major debt problems; unfortunately, Chapter 7 will cause participants to lose a majority of their assets, such as vehicles, household objects and recreational products. Filing a Chapter 7 bankruptcy is also much more difficult because of the Bankruptcy Abuse Prevention and Consumer... more »
There are two ways to qualify for Chapter 7 bankruptcy. If you do, it means that you either meet the required means test or that your debts are too large relative to your income and that you cannot create a satisfactory Chapter 13 repayment plan. Given these facts, there are several options available that can keep you out of... more »
Having found yourself facing foreclosure on your home, you may be wondering what options are available to you and what steps to take. The fact is that you actually have very few options. However, one course that you do have is filing a Chapter 7 bankruptcy. more »
Whether you're searching for consumer or commercial bankruptcy information, we've got you...
Almost everyone goes through times when their personal financial situation seems...
With mounting debt, some people or corporations have no option but to declare bankruptcy....
Declaring bankruptcy is one of the hardest things you'll ever have to do. In bankruptcy, you...
Corporate Chapter 7 bankruptcy is similar to personal bankruptcy, except that the business must stop operations and lose all its assets to repay... more »
Chapter 7 bankruptcy is a useful legal tool to completely get rid of most debts. It stops lawsuits, foreclosures, repossessions and other... more »
A Chapter 7 bankruptcy involves the sale of individual or business assets to pay off debts. A Chapter 7 bankruptcy may be an alternative to other... more »
Due to recent anti-bankruptcy abuse laws, qualifying for complete liquidation of most debts under Chapter 7 bankruptcy is harder than ever.... more »
The debtor's goal in filing Chapter 7 bankruptcy is often relief of both financial and emotional pressure. However, the time right before filing a... more »
Chapter 7 of the Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States. (In contrast, Chapters 11 and 13 govern the process of reorganization of a debtor in bankruptcy). Chapter 7 is the most common form of bankruptcy in the United States., Fiscal Year 2008.
For businesses
When a troubled business is badly in debt and unable to service that debt or pay its creditors, it may file (or be forced by its creditors to file) for bankruptcy in a federal court under Chapter 7. A Chapter 7 filing means that the business ceases operations unless continued by the Chapter 7 Trustee. A Chapter 7 Trustee is appointed almost immediately. The Trustee generally sells all the assets and distributes the proceeds to the creditors.
This may or may not mean that all employees will lose their jobs. When a very large company enters Chapter 7 bankruptcy, entire divisions of the company may be sold intact to other companies during the liquidation.
Fully-secured creditors, such as collateralized bondholders or mortgage lenders, have a legally-enforceable right to the collateral securing their loans or to the equivalent value, a right which cannot be defeated by bankruptcy. A creditor is fully secured if the value of the collateral for its loan to the debtor equals or exceeds the amount of the debt. For this reason, however, fully-secured creditors are not entitled to participate in any distribution of liquidated assets that the bankruptcy trustee might make.
In a Chapter 7 case, a corporation or partnership does not receive a bankruptcy discharge—instead, the entity is dissolved. Only an individual can receive a Chapter 7 discharge (see ). Once all assets of the corporate or partnership debtor have been fully administered, the case is closed. The debts of the corporation or partnership theoretically continue to exist until applicable statutory periods of limitations expire.
< read more at » http://en.wikipedia.org/wiki/Chapter+7%2c+Title+11%2c+United+States+Code
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