CHAPTER 7 BANKRUPTCY is a federally instituted and administered court-ordered debt protection procedure. It borrows it’s name from the section of the United States Code which primarily enables it, 11 U.S.C. § 701 et seq., i.e., “Chapter 7” of the United States Bankruptcy Code.
The public policy behind Chapter 7 Bankruptcy, i.e. the reason that Congress created the law of Chapter 7, is to provide individuals with a “Fresh Start.”
Types of debts which may be addressed by Chapter 7 Bankruptcy include credit cards, personal loans, and certain types of tax debts. Notes related to secured loans, including home equity loans and auto loans, are affected by Chapter 7 and can sometimes result in a benefit to the filer.
Chapter 7 includes special rules which benefit filers whose debts are primarily business in nature. Therefore, Chapter 7 can be an effective way to “clean up” your finances following a failed small business venture.
Chapter 7 is also known as “liquidation,” which suggests that the filer may lose control of certain assets upon the filing of a bankruptcy petition. However, in most cases, all or significant portions of the filer’s assets can be retained by the appropriate use of Exemptions to which a filer who proceeds in good faith is entitled.
CALL US TODAY — 484-220-0481 OR 412-741-1200 — to schedule a free consultation to discuss whether Chapter 7 might benefit you.