Bankruptcy - Bankruptcy Proceeding Chapter 7 Chapter 7 of...

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Bankruptcy Proceeding · Chapter 7 Chapter 7 of the Bankruptcy Code provides for liquidation proceedings to be administered by the bankruptcy cell of the district courts. This means that debtors resolve over all nonexempt property to a case trustee assigned by the court. The case trustee then sells and converts all the Any one who is both a resident and owns a business, partnership, or corporation in the U.S can file chapter 7 bankruptcy. However, a discharge is available to individual debtors only and not all debts can be discharged. A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor’s principal place of business is. . Unless the court orders otherwise, the debtor must also file with the court: any assets and liabilities; their current income and expenditures; a schedule of executory contracts and unexpired leases; and a statement of financial affairs. The debtor must also file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in qualified education or tuition accounts. The debtor must provide the chapter 7 case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case. Individual debtors with primarily consumer debts have additional document filing requirements. All fees must be paid at the time of filing unless, with the court’s permission, they’ve made arrangements to pay the fees by installments. Sometime between 20-40 days after the debtor files the petition, the appointed trustee will hold a meeting of creditors where the
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Bankruptcy - Bankruptcy Proceeding Chapter 7 Chapter 7 of...

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