In a chapter 7 bankruptcy, the trustee gathers and sells the debtor's non exempt assets and uses the proceeds of such assets to pay holders of claims (your creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that secure the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain 'exempt' property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a bankruptcy petition under chapter 7 might result in the loss of some property.

To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or a business entity. If the debtor's 'current monthly income' is more than the state median, the Bankruptcy Code requires application of a 'means test' to determine whether the chapter 7 filing is presumptively abusive. Subject to the means test, relief is available under chapter 7 irrespective of the amount of the debtor's debts or whether the debtor is solvent or insolvent.

Hardy Law Group has filed over 1,000 bankruptcy petitions. When choosing who to represent you during your financial difficulties, choose someone with experience and skill, who is ready and eager to assist you in any way we can.