Chapter 7 bankruptcy is the most common bankruptcy filed in South Florida. It can be a tremendous help if you are falling behind on your credit card bills. And don’t have enough income to afford both your monthly credit card bills and your essential monthly living expenses. Filing a Chapter 7 bankruptcy could be a quick way to turn your financial situation around. And rebuild your credit, by eliminating your unsecured debt and getting a fresh start. Call now for a free 15-minute phone consultation with an experienced bankruptcy attorney to gain a better understand your rights and how bankruptcy can help you.
Liquidation Bankruptcy
Chapter 7 is often called a “liquidation” bankruptcy. Because the process technically allows the trustee to liquidate a bankruptcy debtor’s non-exempt assets for the benefit of that debtor’s unsecured creditors. However, vast majority of Chapter 7 bankruptcies filed in South Florida are “no-asset” bankruptcy cases.
These Chapter 7 bankruptcy cases are called “no-asset” bankruptcy cases because they result in “no-assets” being liquidated by the trustee, meaning you get to discharge your debt without losing any of your assets (i.e., you get to keep all of your personal property and real property).
Generally, a “no-asset” Chapter 7 bankruptcy is the usual outcome when a bankrupt Debtor (a Debtor is what they call the person who owes money and is filing the bankruptcy) does not have sufficient non-exempt assets to make it worth the trustee’s time and expense to actually liquidate and distribute proceeds to creditors. The end result of these “no-asset” bankruptcy cases is that you get to keep all of your assets. Generally, those who file under Chapter 7 of bankruptcy code get to keep all of their property except for non-exempt property that is very valuable or secured property (i.e., a creditor’s collateral, like a car or house) which is subject to a lien or mortgage that you cannot avoid in the bankruptcy case or afford to pay.
However, if a Chapter 7 bankruptcy filer does have valuable non-exempt property. Then that property will likely be turned over to bankruptcy trustee who will sell them to distribute to creditors. Or a payment arrangement would have to be negotiated with Chapter 7 trustee to keep those assets.
The Chapter 7 bankruptcy process typically lasts about 3 months. Starting from the time you file your bankruptcy petition until bankruptcy court grants you an Order of Discharge.