Chapter 7 bankruptcy is the most common form of bankruptcy and is available to individuals, married couples, corporations and partnerships.
Eligibility to file Chapter 7 is determined by the means test that follows the amendments of the bankruptcy code.
A chapter 7 case begins when the debtor files a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. A liquidation proceeding is held where any of the debtor’s non-exempt assets are sold by the Chapter 7 trustee and the proceeds are distributed to creditors according to the priorities established in the Code.
In most consumer cases, all of your assets are exempt, and therefore there are no assets to liquidate and there is no dividend to creditors. Chapter 7 is also the simplest and fastest form of bankruptcy available.
If you are considering bankruptcy then you already have enough on your mind. Stop wage garnishments and harassing calls from creditors today! Contact the experienced and caring Whatcom County bankruptcy attorneys at Tario & Associates, P.S. to get started.