Chapter 7 - Liquidation

Chapter 7 of the United States Bankruptcy Code is commonly known as "fresh start", "straight", "liquidating" or "personal" Bankruptcy. It is also referred to as consumer Bankruptcy, although businesses can also file under this chapter. This chapter allows an individual (with or without a spouse), a corporation or a partnership to eliminate most or all of their debt while being allowed to keep certain property they may have. The fresh start is accomplished by liquidation and discharge of debts.

Click here for the Pros and Cons of Chapter 7 Bankruptcy

In many cases, the individual, corporation or partnership may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan. In addition, the Debtor can chose to voluntarily repay any debt upon agreement with the creditor (called a "reaffirmation agreement") in exchange for continued use of the account you hold with that particular creditor.

Chapter 7 can eliminate the following types of debts:

Credit Card debts;
Judgments - Unless fraud or criminal related;
Deficiency debts on repossessed autos and foreclosures;
Personal loan debts;
Lawsuit debts;
Personal Injury Debts - except driving while intoxicated and criminal injury; and
Medical debts, etc.

Chapter 7 is the most commonly filed form of bankruptcy and can allow for a new start. More and more people find themselves struggling with debt they cannot control. Chapter 7 bankruptcy allows for their debt to be discharged and lets them gain control of their financial situation with a fresh start.

Chapter 7 does not eliminate student loans except undue hardship cases, debts from certain types of taxes, alimony maintenance or support payments, fines, penalties and criminal restitutions, debts incurred through fraudulent conduct, debts incurred through intentional injury to person or property or debts from personal injuries caused by driving while intoxicated.

Our Contact Information:

Telephone: 602-266-1717
Fax: 602-266-2484
Postal Address: 301 East Bethany Home Road, Suite C-195; Phoenix, Arizona 85012-1266
Electronic Mail: James.Kahn@AzBar.org

Find directions to our office courtesy of:

Map to 301 E Bethany Home Rd
Phoenix, AZ 85012-1263

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James F. Kahn, P. C. presents the information on this web site as a service to legal consumers, our clients and other Internet users. While this site does provide information on law-related topics, it does not provide legal advice. Moreover, due to the rapidly changing nature of the law and our reliance on information provided by outside sources, we make no warranty or guarantee concerning the accuracy or reliability of the content at this site or at other sites to which we link.

Chapter 7 - Liquidation

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