Bankruptcy Court Greenbelt
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In most chapter 7 cases, if the debtor is an individual, he or she receives a discharge that releases him or her from personal liability for certain dischargeable debts. The debtor normally receives a discharge just a few months after the petition is filed.
Amendments to the Bankruptcy Code enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require the application of a "means test" to determine whether individual consumer debtors qualify for relief under chapter 7. If a debtor's income exceeds certain thresholds, the debtor may not be eligible for chapter 7 relief, but he or she may seek relief under another chapter.
Bankruptcy
Chapter 7
Chapter 7, entitled Liquidation, contemplates an orderly, court-supervised procedure by which a trustee takes over the assets of the debtor's estate, reduces them to cash, and makes distributions to creditors, subject to the debtor's right to retain certain exempt property and the rights of secured creditors.
Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor's assets. These cases are called "no-asset cases." A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court.
The foregoing text, with minimal revision, was excerpted from the following site:
http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/process-bankruptcy-basics
Contact Feder Legal, to set up a free Chapter 7 consultation, or follow the link below for information about Chapter 13 Bankruptcy.
A Chapter 13 bankruptcy attorney can also help you obtain your financial "FRESH START."
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
