Avalon, NJ Bankruptcy Law Firms & Lawyers

A Chapter 7 bankruptcy is defined by the Bankruptcy Code as ?Liquidation?. It is available to both business entities and natural persons (i.e., an incorporated business can file Chapter 7, but so can you). In every Chapter 7 case a Trustee is appointed to administer the ?bankruptcy estate?. The Trustee?s role is to find assets to liquidate (i.e., sell or otherwise turn into cash ? by collecting debts, pursuing litigation, etc.) in order to pay creditors back a portion of the debt that is owed to them. In the case of a business entity, the company is closed down and all the assets (or the business itself) is sold to bring money into the bankruptcy estate. Where individuals are concerned some assets *might* be liquidated to bring money into the bankruptcy estate, but in the vast majority of Chapter 7 cases filed by individuals there are no assets to liquidate. This does not mean that everyone filing for Chapter 7 bankruptcy protection is completely destitute, it is simply because there are exemptions for certain assets, and in most cases filed in Massachusetts the exemptions cover substantially all of the assets an individual owns. Your home is included in a Chapter 7 case, but that doesn?t mean that you will lose your home. In Massachusetts an individual can protect up to $500,000 of the equity in her home from becoming a part of the bankruptcy estate. That means that in most cases if you can pay your mortgage, you can keep your home, even after a Chapter 7 bankruptcy. If you cannot pay your mortgage and both you and your attorney decide that letting the house go is the best route for you, then Chapter 7 may still be the best option for you, because a Chapter 7 bankruptcy will allow you to discharge your personal liability under the mortgage note. A discharge in this case will keep the bank from trying to recover any deficiency you owe after the sale of the house at foreclosure.

You are allowed to obtain a chapter 7 discharge of your debt once every eight years. If your discharge date is eight or more years ago, you should be able to file a new bankruptcy. Please make sure you file with an experienced bankruptcy attorney as filing pro se has to be one of the all time worst mistakes a person can do with their financial life.