Palm Beach Gardens, Vero Beach & Wellington Chapter 7 Bankruptcy Attorney
Although we try to plan for our financial future as best as we possibly can, sometimes events occur that place us into overwhelming debt. With creditors constantly harassing you, it can feel like there is no escape from the insurmountable amount owed; however, Chapter 7 bankruptcy exists to protect debtors from crushing debt and allows for a new financial start. At Markarian & Hayes our experienced Palm Beach Gardens, Vero Beach & Wellington Chapter 7 bankruptcy attorneys have a successful history of helping clients through the process and can get you the help that you need, too.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy proceedings are also known as liquidation bankruptcy. Under this type of bankruptcy, the debtor’s nonexempt property is collected and sold to pay off the debts owed to creditors. Unlike other options for filing for bankruptcy, Chapter 7 does not require any type of repayment or reorganization plan. Instead, the debtor is required to disclose all assets to a bankruptcy trustee through a series of forms so that the trustee can collect the necessary assets to sell.
In order to be eligible for Chapter 7 bankruptcy, the debtor can be an individual, partnership, or other business entity. A person or business can petition for Chapter 7 relief regardless of the amount of debt or solvency.
Chapter 7 Liquidation Process
The Chapter 7 liquidation process begins by the appointment of a bankruptcy trustee by the court who handles the proceedings. The debtor submits a schedule of assets, current income and expenditures, statement of financial affairs, any contracts or leases to the trustee, and a variety of other documents detailing the creditors in addition to the amounts owed.
Among the schedules filed with the court is a list of exempt property that cannot be sold to pay off outstanding debt. Once the petition is filed, an automatic stay is placed on your debts that prohibits creditors from filing further actions. This means that creditors cannot file or continue lawsuits, collect wage garnishments, or contact you regarding payment.
Any nonexempt property is given to the trustee to be sold off to pay off the debts to the creditors. Once the nonexempt property is liquidated to pay the debts, the remaining debts can be discharged by the bankruptcy court. However, it is important to note that priority debts such as child support and alimony survive Chapter 7 discharge in addition to any debt that has been declared non-dischargeable by the court.
Call a Palm Beach Chapter 7 Bankruptcy Attorney Today
If you or someone that you know is in need of Chapter 7 bankruptcy protection, let the expert bankruptcy law attorneys at Markarian & Hayes help. Call or contact the office today for a private review of your claims. We promise to help you through every step of the process and ensure that your rights are being protected to the fullest extent of the law.