Chapter 7, also referred to as Straight or Liquidation Bankruptcy, allows the debtor to discharge, or wipe out, most of their unsecured debt while keeping their car(s) and home, depending on the individual circumstances. The majority of debtors file for Chapter 7 bankruptcy, even under the new law.
Debtors filing for Chapter 7 protection must list all their assets, all their creditors (even those they are paying back) and disclose their income and expenses. If they own any assets worth a significant amount (after satisfying any liens on secured property), the Chapter 7 Trustee has the power to take possession of the property and sell it. The proceeds are then used to share among your creditors.
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Law Office of Lynn A. Lape
5451 North Bend Road, Suite 105B
Cincinnati, OH 45247
Phone: 513.741.9738
Fax: 513.741.0158
Email: info@lynnlapelaw.com
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