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Did you know that the right to bankruptcy is a constitutional right? It is also a complex body of law, with certain state-by-state variances, and can be safely and efficiently navigated only with the assistance of an experienced advocate.
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Detroit Chapter 7 Bankruptcy Attorney
At Frego & Brodsky, P.L.C., our lawyers and staff are dedicated to providing high quality bankruptcy representation to clients throughout the metro Detroit, Ann Arbor, and Flint areas. We strive to help you understand bankruptcy and how your financial situation may warrant filing bankruptcy to regain control of debts.
For additional information about Chapter 7, please review the content below. This content is general knowledge and can enhance your understanding of this type of bankruptcy. To discuss your specific situation or how filing Chapter 7 affects your situation, contact our office to schedule a free case evaluation with a lawyer at our firm.
For additional information about Chapter 7, please review the content below. This content is general knowledge and can enhance your understanding of this type of bankruptcy. To discuss your specific situation or how filing Chapter 7 affects your situation, contact our office to schedule a free case evaluation with a lawyer at our firm.
Chapter 7 - An Overview
Both individuals and small businesses can find themselves with more debts than they can pay when due. In such cases, filing bankruptcy may provide a solution to what seems like an insurmountable problem. Bankruptcy law provides two basic forms of relief: (1) liquidation; and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. A skillful attorney can advise individuals and businesses alike on whether Chapter 7 may be the right choice for them. The bankruptcy lawyer's goals are to help debtors make a fresh start and ensure that creditors get paid.
Because bankruptcy law is primarily federal in origin, it varies little from state to state. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by and do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.
Because bankruptcy law is primarily federal in origin, it varies little from state to state. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by and do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.
Debts that Remain After a Chapter 7 Discharge
The rules on which debts are discharged, or eliminated, are different depending on which type of bankruptcy is filed. A lawyer experienced in bankruptcy law can advise his or her clients on whether and how particular debts will be affected by a bankruptcy discharge. Generally speaking, in a Chapter 7 proceeding, the following debts are not discharged.
What is a "Discharge" Under Chapter 7?
"Discharge" in the bankruptcy sense refers to clearing the debtor's slate of all, or most, past debts. Although many people expect that filing bankruptcy will wipe out all of their debts, it is not always the case. Bankruptcy only discharges certain debtors of certain debts. The availability of discharge depends on the type of bankruptcy proceeding involved, who the debtor is, and what type of debts the debtor has. An experienced bankruptcy attorney can advise his or her clients as to which debts will be discharged by a Chapter 7 bankruptcy and which debts will remain.
Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor has to turn certain property over to the bankruptcy trustee so that the property can be sold and the proceeds used to pay off debts. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. Experienced bankruptcy lawyers can answer these and other questions, allay fears, and keep the process moving forward as painlessly as possible.
Non-Bankruptcy Workouts
The term "workout" is used to describe a non-bankruptcy negotiated modification of debt. More simply stated, a workout is an agreement worked out between a debtor and his or her creditors for repayment of the debts between them, which is negotiated without all the procedural complications-and perhaps the stigma-of the bankruptcy process. Lawyers experienced in bankruptcy and debtor-creditor law can advise both debtors and creditors on whether a non-bankruptcy workout may be their best course of action.
Frequently Asked Questions About Chapter 7
Q: How does Chapter 7 liquidation work?
A: In a Chapter 7 case, the debtor must turn his or her non-exempt property over to a bankruptcy trustee, who then converts the property into cash by selling it and pays the debtor's creditors from the sale proceeds. In return, the debtor receives a Chapter 7 discharge if he or she pays the filing fee, is eligible for such a discharge, and obeys the court's directives.
Q: Who is ineligible for a Chapter 7 discharge?
A: A person may not be eligible for a discharge under Chapter 7 if he or she has been granted a discharge in a Chapter 7 case filed within the last eight years or in a Chapter 13 case filed within the last four years; if he or she engages in certain fraudulent conduct related to the bankruptcy or his or her financial situation; or if he or she refuses to answer questions or obey orders of the bankruptcy court; or if he or she fails to qualify under the financial means test.
A: In a Chapter 7 case, the debtor must turn his or her non-exempt property over to a bankruptcy trustee, who then converts the property into cash by selling it and pays the debtor's creditors from the sale proceeds. In return, the debtor receives a Chapter 7 discharge if he or she pays the filing fee, is eligible for such a discharge, and obeys the court's directives.
Q: Who is ineligible for a Chapter 7 discharge?
A: A person may not be eligible for a discharge under Chapter 7 if he or she has been granted a discharge in a Chapter 7 case filed within the last eight years or in a Chapter 13 case filed within the last four years; if he or she engages in certain fraudulent conduct related to the bankruptcy or his or her financial situation; or if he or she refuses to answer questions or obey orders of the bankruptcy court; or if he or she fails to qualify under the financial means test.
Chapter 7 Resource Links
American Bankruptcy Institute Consumer Corner
General information regarding debt and bankruptcy
Chapter 7
FAQ from Mortgage101.com
United States Code on Chapter 7 Bankruptcy
from Cornell University
General information regarding debt and bankruptcy
Chapter 7
FAQ from Mortgage101.com
United States Code on Chapter 7 Bankruptcy
from Cornell University
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Home | What To Ask Before You Hire An Attorney | Testimonials | Practice Overview | Bankruptcy Chapter 7 | Bankruptcy Chapter 13 | Bankruptcy News | Non-Bankruptcy Alternatives | Firm Overview | Christian Debt Relief | What Can I keep? | Stopping Creditor Harassment | Who Files for Bankrptcy | FAQs | Attorneys | Contact Us
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Dearborn Heights
23843 Joy Road
Dearborn Heights, MI 48127
Phone: (313) 565-4252
(800) 978-4788
Dearborn Heights
23843 Joy Road
Dearborn Heights, MI 48127
Phone: (313) 565-4252
(800) 978-4788
Frego & Brodsky, P.L.C.
Attorneys at Law
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"A FRESH START"
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