TOVAR LAW FIRM

TOVAR LAW FIRM | CHAPTER 7 BANKRUPTCY | STOCKTON | SACRAMENTO

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Chapter 7 Bankruptcy, also called liquidation, was the most common type of bankruptcy filed in Stockton & Sacramento in 2016 and completely eliminates dischargeable debt. Individuals or Businesses who are granted a Chapter 7 Bankruptcy discharge have typically
shown that they have no realistic way to repay their debt.

A Chapter 7 Bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13 Banruptcy. Instead, if appropriate, the Chapter 7 Bankruptcy Trustee gathers and sells the debtor's "non-exempt assets" whether in Stockton or Sacramento or anywhere else and uses the proceeds of such assets to pay creditors on a pro-rata basis and in accordance with the provisions of the Bankruptcy Code.

Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors.  The Bankruptcy Code will allow the debtor filing Chapter 7 Bankruptcy to keep up to certain "exempt property," but a trustee will liquidate the debtor's remaining, "non-exempt assets," if any, for the benefit of creditors.  

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Accordingly, potential debtors should realize that filing of a petition under Chapter 7 Bankruptcy may result in the loss of property.

To discuss what property you may keep when filing Chapter 7 Bankruptcy in Stockton or Sacramento or when filing any other type of Bankruptcy, call & schedule an appointment with the Tovar Law Firm today.

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