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Background. A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtors nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in ance with the provisions of the Bankruptcy Code.
What is the downside of Chapter 7?
There is no minimum debt to file bankruptcy, so the amount does not matter.
Is it better to file a Chapter 7 or 13?
Chapter 7 bankruptcy allows liquidation of assets to pay creditors. Unsecured priority debt is paid first in a Chapter 7, after which comes secured debt and then nonpriority unsecured debt. Filing Chapter 7 typically involves completing forms and a review of assets by the trustee.
difference between chapter 7 and 11
Chapter 7 vs Chapter 13Chapter 7 vs Chapter 11How to file Chapter 7 with no moneyWhat happens after filing Chapter 7How much do you have to be in debt to file Chapter 7Chapter 7 qualificationswhat happens if chapter 7 is denied?How to file Chapter 7 yourself
This chapter of the Bankruptcy Code provides for liquidation - the sale of a debtors nonexempt property and the distribution of the proceeds to creditors.
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