If you have a Chapter 7 asset case, your bankruptcy trustee collects and sells your asset and pays your priority debt with the proceeds. Our last blog post was about what happens to priority debts in a no-asset Chapter 7 case. Most consumer “straight bankruptcy” Chapter 7 cases are no-asset ones. This means that the bankruptcy trustee does not … Read More
In a Chapter 7 no-asset bankruptcy case, the trustee collects nothing from you and pays nothing on your debts, including your priority ones. Most Chapter 7 Cases Are No-Asset Cases Chapter 7—“straight bankruptcy”—is the most common type of consumer bankruptcy case. They are generally the most straightforward, lasting about 4 months start to finish. Usually everything you own is … Read More
If you are expecting an inheritance, or even if you are not, the special rules about them are worth your attention to prevent bad surprises.
To find out if you can keep everything you own in a Chapter 7 case, the first step is finding out what’s in your bankruptcy estate.
Usually everything you own is exempt (protected). But what happens if you own an asset that is not exempt? What does the trustee do? Chapter 7 is the “liquidation” form of bankruptcy. But in our last blog post we introduced the bankruptcy trustee as an only sometimes liquidator. That’s because in most Chapter 7 cases nothing gets liquidated. Nothing … Read More
Chapter 7 “straight bankruptcy” is quick, usually quite straightforward, and appropriate for more situations than you might think.
Give your asset to the Chapter 7 trustee to pay a very special creditor. Either because you donât need that asset or itâs your best option.
Most people who file bankruptcy under Chapter 7 do not have to surrender anything to their trustee because everything they own is “exempt.”
One strategy to prevent the loss of asset value in bankruptcy is through very cautious conversion of unprotected assets into protected ones.
If you’re filing a “straight bankruptcy” case, how do you keep your income tax refund?