Referred to as “Straight Bankruptcy” by attorney practitioners, Chapter 7 offers immediate relief from the burdens of unmanageable debt. It is available to debtors who are unable to reorganize their debts through a Chapter 13 Debt Reorganization.
The process involves detailed examination and analysis by a Court appointed Bankruptcy Trustee of the possibility of liquidation of your assets to pay the claims of your creditors, and, a further decision by the U.S. Bankruptcy Court as to the discharge ability of your debts.
In preparation for a Chapter 7 case you will meet personally with Mr. Roberts for a review of your financial affairs including, but not limited to:
- Your debts;
- Your property interests;
- Your current and past income;
- Your current and expected future reasonable living expenses; and
- Transfers of property within the past year.
Your debts will be classified according to the U.S. Bankruptcy Code into Secured, Priority or Unsecured classes. In general, non-priority unsecured debts will be discharged, however, there are instances when discharge is not allowed or denied, i.e., debt associated with taxes, fraud, misconduct, support, fines, student loans, among others. Mr. Roberts will review each of your debts to alert you if any debt appears questionable for discharge.
Your property interests will also be characterized for proper scheduling pursuant to the U.S. Bankruptcy Code and analyzed for claims of exemption. This refers to the process of removing property interests from the bankruptcy estate, or ability of the Trustee to seize that property for liquidation.
Once your case is filed, you will be required to attend what is known as a Creditors Meeting. This Meeting will occur approximately 40 days after the filing of your case. I will attend this Meeting with you and assist you in preparing for such.
Upon completion of the Creditors Meeting, I will be available to advise you throughout the balance of the case, which, in most instances, can be concluded in two to three months. Absent unforeseen circumstances, no other appearances, meetings or hearings will be required of you. The case is then closed by the U.S. Bankruptcy Court with the issuance of an Order “Discharge of Debtor.”
