Bankruptcy Attorney in Salem

Understanding Chapter 7 Bankruptcy

In Chapter 7, a debtor liquidates his or her property in order to wipe out debts and pay creditors. A debtor who owns a business or property, or who resides in the United States may choose to file for Chapter 7 so that they can achieve a fresh start.

Businesses

When a business is in great debt and unable to pay creditors, they may file for Chapter 7. Once they file, the business will cease operations and have a Chapter 7 Trustee appointed to their case. The Trustee examines the business's finances and will often sell all assets to help repay the creditors, and entire divisions may be sold to other businesses during the liquidation process. A business does not qualify to receive a bankruptcy discharge under Chapter 7.

Individuals

An individual who files for Chapter 7 often seeks to resolve unsecured debts, such as debt incurred from medical bills or credit cards. Before filing for Chapter 7, the individual must go through credit counseling to complete a debt education course with an agency that the Trustee assigned to the case approves. The debtor will be able to keep some exempt properties, while other assets will be liquidated to help pay creditors. In Chapter 7, many types of unsecured debt will be legally discharged, providing the debtor with a fresh start.

Are you considering Chapter 7 bankruptcy?

If you are considering Chapter 7 as an individual or a business, a Salem attorney may be able to help you understand your options. We know that the decision to file bankruptcy, whether Chapter 7 or Chapter 13, is a serious and difficult one, and we may be able to assist you as you assess your debts and the impact that bankruptcy could have on your life or business. The Law Offices of Sarah S. Rama have the bankruptcy experience of larger Boston firms without the high fees, and we will give your case the personal attention it deserves.

If you are considering Chapter 7 bankruptcy, contact a Salem bankruptcy lawyer for a free initial consultation.