Chapter 7 Bankruptcy Law Firm.
Chapter 7 is commonly known as a “fresh start Bankruptcy”. As a result of Bankruptcy creditors are prohibited from calling, billing, suing or contacting you. Lawsuits and garnishments are stopped. In some cases, repossessed vehicles must be returned.
THE FOLLOWING QUESTIONS AND ANSWERS ABOUT CHAPTER 7 BANKRUPTCY ARE FOR INFORMATIONAL PURPOSES ONLY, AND NOT LEGAL ADVICE. THIS Q & A IS GENERAL IN NATURE. SPECIFIC INFORMATION, ASSET AND ESTATE PLANNING, SHOULD BE ADDRESSED BY AN ATTORNEY.
Frequently asked questions.
1. What is a Chapter 7 Bankruptcy and how does it work? It is commonly know as a liquidation. If any nonexempt property exists, it is turned over to a Trustee, who converts the property to pay the Debtor’s creditors.
2. Who is permitted to file a Chapter 7? A person must qualify under a process called means testing. Also, the person must reside, do business, or have property in the United States and has not previously filed a prior Bankruptcy case that was dismissed within the last 180 days.
3. How much is the filing fee? The filing fee is $338.00.
4. May a husband and wife file jointly? Yes. Only one set of bankruptcy forms and one filing fee is charged.
5. How does filing affect collection and legal proceedings? Due to the filing of a case it automatically suspends collection and other legal proceedings pending against that person. The Court will mail a notice to all creditors ordering them to refrain from any further action against the person.
6. What is a Trustee, and what does he or she do? The Trustee is a person appointed to examine the person who filed the case, collect the nonexempt property, and pay the expenses of the estate and the creditors. In addition, the Trustee is responsible for seeing to it that the person filing performs the required duties in the case.
7. How does a Chapter 7 discharge affect cosigners on a discharged debt? The discharge releases only the person or persons who filed the Chapter 7. Therefore the non filing cosigner is still liable for the debt.