If you are facing debt problems, bankruptcy may be a viable solution. The experienced Sacramento metropolitan area/Northern California defense attorneys at the Montefalcon Law Offices are here to help you if your financial position necessitates the consideration of a bankruptcy case filing under Chapter 7, 11, or 13. Contact us online or schedule a consultation at any of our three conveniently located offices. Federal law, specifically chapters 7, 11, and 13 of Title 11, detail the most common types of bankruptcy relief. Today’s blog addresses the relief provided by Chapter 7. What is a Chapter 7 bankruptcy?
Chapter 7 of the Bankruptcy Code regulates the procedure for liquidation under federal bankruptcy law. In contrast to chapter 7, chapters 11 and 13 govern the process of reorganization of a bankruptcy debtor. A bankruptcy filed under chapter 7 is the most common type of bankruptcy case filed in the United States.
Chapter 7 provides for a liquidation of the debtor’s property. More specifically, the sale of the debtor’s nonexempt property and the distribution of the sale proceeds to creditors. Exempt property is that property which a chapter 7 debtor may protect or exempt from the liquidation process. Federal law permits each state to adopt its own exemption laws, which a debtor may choose instead of the exemptions provided by federal law. Since this may be a complicated analysis and chapter 7 debtors may lose some property when filing a petition under chapter 7, it is important to consult with an experienced attorney.
Unlike a bankruptcy case filed under chapter 13 of Title 11, a chapter 7 bankruptcy case does not require the formulation and submission of a plan of repayment. Rather, the bankruptcy trustee assigned to the debtor’s case collects and sells the debtor’s nonexempt assets and uses the proceeds of these assets to pay creditors with allowed claims pursuant to the provisions of the Bankruptcy Code.
An experienced Sacramento metropolitan area/Northern California bankruptcy attorney like Alberto Montefalcon is here to help you if your financial position requires the consideration of bankruptcy as a solution to once and for all solve immediate financial problems. Contact his office online or schedule a consultation at any of our three conveniently located offices. Telephone our downtown Sacramento office at (916) 444-0440, our South Sacramento office at (916) 399-9944, or our Concord office at (925) 222-5929.