13 Feb Bankruptcy Basics–Chapter 7: What does that mean?
A Chapter 7 bankruptcy is a bankruptcy case filed under Chapter 7 of the U.S. Bankruptcy Code. The Bankruptcy Code is part of Title 11 of the United States Code. Chapter 7 is titled “Liquidation”. Some other sections of Title 11 apply to Chapter 7 Debtors even though the rules are in different chapters. For example: Chapter 1 defines who can be a debtor. Chapter 3 deals with how the cases (under any chapter) are handled by the courts, trustees, and others. Chapter 5 talks about creditors, debtors and the estate of the debtor. The whole law has to be read to understand what applies and what doesn’t apply. An attorney can help guide you through the maze known as 11 USC and help you find the relief that is sometimes hidden in the Code. A chapter 7 bankruptcy is available to all persons and to entities. Chapter 7 bankruptcy can discharge most unsecured debts. Personal liability for those debts is discharged. Some debts survive a chapter 7 bankruptcy, such as priority debts (taxes, criminal fines, restitution, child or spousal support) and generally student loans.
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