Chapter 7 Bankruptcy

Canterbury Law Group has successfully worked on Chapter 7 bankruptcy cases; therefore we thoroughly understand their complex nature and can assist you through every step of the process.

The most common form of bankruptcy in the United States, Chapter 7 bankruptcy, provides individuals with a discharge of all debt, which are “dischargeable” under the Bankruptcy Code. In a Chapter 7, all of the debtor’s non-exempt assets on the petition date are liquidated through the priorities set forth in the Bankruptcy Code. At the time of filing, the bankruptcy code establishes the creation of your “debtor’s estate” which includes all “non-exempt assets.” As a Debtor you have various duties and obligations, including significant duties of co-operation, which are owed to the Trustee. These obligations are designed to assist the Trustee in the administration of your bankruptcy estate.

Subject to the “means test” for individual debtors, relief is available under chapter 7 irrespective of the amount of your debts or whether you are solvent or insolvent. An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit-counseling agency either in an individual or group briefing.

A typical Chapter 7 bankruptcy case takes three to six months to complete. Many Chapter 7 debtors keep all or most of their personal property yet some petitioners with significant equity and assets that are not exempt by law may be required to use their equity and / or assets to satisfy some of the debt. Chapter 7 can temporarily stop foreclosure cases, but unless you become current on your mortgage, the foreclosure will most often eventually continue.