Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is a liquidation bankruptcy. It is the type of bankruptcy most people think of when they think of a bankruptcy.

Money & House

In a Chapter 7 you list all of your assets and all of the people that you owe money to. If there are any of your assets that can be sold to pay down your debts it will happen. If there is still a debt owed to your creditors after they are paid, they will typically be discharged with a few exceptions (examples would be tax debt and child support debt).

The legislature wants people to have a fresh start with a bankruptcy, but they also know that in order to do so one would need to retain some of their assets. People in bankruptcies are allowed to keep certain possessions out of a bankruptcy by way of using exemptions. There are exemptions available for equity in your vehicle, your homestead, household goods and furnishing and many other assets. Your assets can be sold to pay your debts.

It is probable in a Chapter 7 bankruptcy an individual can discharge all of their debts while retaining all of their assets. Each individual bankruptcy is unique.

Call the Bhend Law office to set up a free consultation to examine your particular situation.

1801 W 32nd Street

Building B, Suite 204

Joplin, MO 64804

(417) 623-3529