Chapter 7 Bankruptcy Could Mean The Liquidation Of Non-Exempt Assets

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

Chapter 7 Bankruptcy:

Chapter 7 is a ‘liquidation’ of all the non-exempt assets that would allows a debtor to pay off some of their debts. As this is a supervised procedure, the court will appoint a personnel who has the authority to sell all the non-exempt assets owned by the defaulter and appropriate the sales money to various creditors. Bankruptcy chapter 7 exemptions means that there are assets that the creditors cannot touch when filing for bankruptcy.

The debtor selects property that he/she is eligible to keep from a list containing state exemptions or exemptions provided in the Federal Bankruptcy Code. The property shall be divided as exempt or non-exempt once the trustee files a property exemption report. State exemption laws can vary from one state to another although some basic laws may be the same.

Secured debts are first paid off but if the debt is unsecured, it can be possible that the creditors of unsecured debts may not get paid at all. The trustee will pay the right creditors in the right amount. The debtor may also file the case in a state where he/she has previously lived for more than 180 days, up to 2 years.

Federal exemptions may also be provided, if applicable in your jurisdiction, including retirement benefits, death disability benefits, survivor’s benefits and miscellaneous uitems.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.