If you are considering chapter 7 bankruptcy, call our team to have one of our experts guide you through the process.
At Tarantino Law, PLLC, we understand that no one ever wants to find themselves facing the prospect of bankruptcy. However, if you have reached the point where you feel it may be your best option, we want you to know that it is not the end of the world, and that declaring bankruptcy can actually be the first step to getting your finances under control. There are many types of bankruptcy, each named after the chapter of the bankruptcy code in which it appears. In this article, we’ll be going over the basics of chapter 7 bankruptcy to help you determine if this might be the best choice for you.
Chapter 7 bankruptcy is sometimes also referred to as liquidation. This is because in a chapter 7 bankruptcy, a trustee gathers the debtor’s nonexempt assets and liquidates them, meaning that they are sold for cash. This money is then distributed to pay back your various creditors. While you may be able to keep certain exempt properties, in this form of bankruptcy you will very likely lose much of the rest. Filing for chapter 7 bankruptcy requires you to compile some key information and present it to the courts, including:
- a list of all your creditors and how much money you owe to each
- how much money you make, where it comes from, and how often you receive payments
- a list of your property
- a list of your living expenses (food, shelter, utilities, transportation, etc.).
Our team is proud to serve the Mooresville, North Carolina community, and we want to help you navigate this difficult process. If you are considering filing for bankruptcy, we encourage you to give us a call to consult with one of our experts.