Chapter 7 Bankruptcy

Chapter 7 allows for the liquidation of assets to help those with debt to regain control on their financial situation. Chapter 7 discharges debts entirely through such actions as liquidation.

If a business is filing Chapter 7, all business operations cease immediately after filing. Only an appointed trustee can decide to continue operation of the business. In general, the trustee liquidates assets of the company to pay off creditors. Corporations who file for Chapter 7 do not have their debts discharged, and are simply dissolved by the end of the bankruptcy process.

Individuals can have their debts discharged, except those not exempted by the law. This filing will stay on their credit report for ten years. It will have a negative impact, but the individual will be able to begin rebuilding their credit almost immediately after filing. If it's possible for a Chapter 13 to allow an individual to repay their debts, a Chapter 7 is not usually allowable. Contact Mr. Altholz's office for more information.