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Thomas B. Kakassy - Attorney at Law
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"Attorney
at Law
[ What
We Do Fees F.A.Q.
Bankruptcy Interview Worksheet Contact
Us Directions
Email
Home ]
Bankruptcy Overview
[ General
Questions Chapter 7 Chapter
13 ]
General
Question
What is Bankruptcy?
Bankruptcy is a legal proceeding filed in the United States Bankruptcy Court that permits
you to obtain a discharge of your obligation to pay certain debts. The bankruptcy laws are intended to allow
an honest but unfortunate debtor an opportunity to get a fresh start.
What is a Chapter 7 Bankruptcy Case?
A Chapter 7 bankruptcy case is one in which the bankruptcy petition is filed under Chapter 7 of the Bankruptcy Code.
Under Chapter 7, a Trustee is appointed to sell or liquidate any of the debtor's “nonexempt" assets or property in order to raise cash
to make payments to creditors. A nonexempt asset is property of the debtor that the law specifically allows the debtor to keep. A
Chapter 7 case is sometimes referred to as a "straight” bankruptcy or a “liquidation” case. The vast majority of those cases were
"no-asset cases" in which the Trustee determined that there were no non-exempt assets that must be liquidated to pay creditors.
A Chapter 7 debtor who cooperates with the Trustee and complies with all of the provisions of the Bankruptcy Code
receives a discharge. A discharge is a Bankruptcy Court order that releases the individual from the legal obligation to pay debts.
Certain debts, such "
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