Chapter 7 Bankruptcy
What is Chapter 7 Bankruptcy?
The Chapter 7 Bankruptcy differs from Chapter 13 Bankruptcy in a way that Chapter 7 Bankruptcy does not require debt restructuring nor involves a court approved repayment plan. Under this chapter, the assigned trustee takes stock of the borrower’s non-exempt assets and sells them to pay off the creditors. This may include partial pledging on property assets or even sale of a few approved real estate assets based on individual situation.
Benefits of Chapter 7 Bankruptcy
In short, Chapter 7 Bankruptcy allows the individual to pay off their debts and fulfill other financial obligations without the risk of losing their personal property based on individual analysis and situation. In most instances, the debtors are allowed to keep most of their prime assets. This form of bankruptcy filing allows debtors and borrowers to start all over again with a clean slate, so far as their personal finances are concerned.
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