Boston Bankruptcy Attorney

Chapter 7 Bankruptcy

If you find yourself in a hard financial situation with more debts accrued that you have the means to pay off, you might consider bankruptcy as a viable economic solution to your problems. Bankruptcy, in general, is the process of attempting to pay off one’s debts while attaining legal protection from further accumulation of more money owed.

There are two main forms of bankruptcy available to individuals: Chapter 7 bankruptcy, which involves the liquidation of one’s assets to create the money needed to pay creditors, and Chapter 13 bankruptcy, which involves the complete reorganization of one’s payment plan to creditors in order to reduce monthly payments to a financially reasonable amount.

What is liquidation?

Chapter 7 bankruptcy is known to some as either a straight bankruptcy or “liquidation bankruptcy.” Liquidation is the sale of one’s assets – possessions or physical property. Under Chapter 7, the money gained through the liquidation process is used to pay off creditors. There are certain pieces of “exempt” property that cannot be sold under this type of bankruptcy, but anything else is liable to be liquidated.

Non-exempt property typically includes unnecessary and/or expensive items, such as large collections (stamps, coins, etc.), second or third motor vehicles, second homes, investments, bonds, or cash. Exempt items usually will be property such as necessary clothing, trade tools, appliances, some jewelry, some motor vehicles, and some necessary home furnishings.

Contact Us

Chapter 7 is by far the most common form of bankruptcy for which people file in the United States. If you currently find yourself in difficult financial standing, then choosing Chapter 7 bankruptcy may be the best option for you. To learn more about the filing process, please contact the Boston bankruptcy attorneys of Joshua Spirn & Associates today at 1-800-975-5346.