Bankruptcy > Chapter 7

Chapter 7

Chapter 7 Bankruptcy is envisioned under the United States Bankruptcy Code as a way for an individual with an unmanageable amount of debt to get a clean start.  At the end of the proceeding, nearly all debts are eliminated.  (Exceptions can include support payments, tax debts, fines and student loans.)   In a Chapter 7 Bankruptcy, the debtor surrenders his or her non-exempt assets to a bankruptcy trustee.  The trustee is charged with the responsibility of selling these unprotected assets and dividing the proceeds among the individual’s creditors.  In many cases, the debtor is able to protect most of his or her assets, including residences and vehicles.  At the end of the Chapter 7 Bankruptcy process, the net result is that the individual is no longer legally obligated for the debts included in the bankruptcy.

Criteria such as a debtor’s income and amount of various types of debt factor into determining whether a Chapter 7 filing is the right decision to make.  Attorneys at the Law Offices of John E. Bedi in Hampton and Chesapeake will be happy to meet with you and conduct a free bankruptcy and debt relief consultation to help you determine your appropriate course of action.

See our dedicated sections to learn more about Chapter 11 Bankruptcy and Chapter 13 Bankruptcy.