Chapter 7 Bankruptcy
Many Chapter 7 Bankruptcy cases can be referred to as “no asset,” or “liquidation.” The trustee has a duty to sell the debtor’s nonexempt property and to pay creditors in a specific order of priority required in the Bankruptcy Code. Exempt property is property a debtor gets to keep to help get a fresh start in life. Because of these exemptions, rarely will you lose your car, and in many circumstances you may be able to keep your home and household possessions as well.
At the conclusion of a Chapter 7 case, debtors receive a Bankruptcy Discharge, which releases them from personal liability from specific debts and and includes a permanent injunction against collection of debt. The Discharge is mailed to the debtor within 60 days after the 341(a) Meeting.