There are three common types of bankruptcy filings: Chapter 7, Chapter 11, and Chapter 13. Chapter 7 bankruptcy is most frequently used by individuals, partners or corporations who have no other option. Those who file for Chapter 7 bankruptcy have no hope of fixing their financial situation.
– In this type of bankruptcy, the debtor’s assets and estate are liquidated based on the bankruptcy code.
– All non-exempt property is sold for cash, and that cash is distributed to your creditors.
– The sale of these assets is handled by a trustee.
Certain types of debt are not dischargeable under Chapter 7 bankruptcy. These include alimony, child support and other divorce-related debts, as well as debts for personal injury cases.
Student loans debts are typically not discharged under Chapter 7 bankruptcy, but in certain cases the court will find that the debt imposes an undue hardship on you, and they will discharge the debt.
The process of filing for bankruptcy can be a complicated one, and the best way to navigate it is with the help of an experienced attorney. Contact the Law Office of Joel R. Spivack for a review of your situation.