Purpose of Chapter 7 Bankruptcy

Most bankruptcy cases are filed under Chapter 7 (the so-called liquidation Chapter), pursuant to which the debtor’s nonexempt assets are sold and the proceeds paid to creditors.
In the majority of Chapter 7 cases, however, no dividends are actually paid to unsecured creditors because most debtors’ assets are fully encumbered, exempt or insufficient to pay anything other than a small fee to the Chapter 7 trustee. These are commonly referred to as “no asset” cases

Advertisements

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s