Chapter 7 , Also known as a “Straight Bankruptcy”, Is what most people think of when they think of bankruptcy cases. A trustee is appointed to liquidate the assets, and all of the debtor’s debts, with a few exceptions, are discharged. The debtor get to keep what property falls under North Carolina homestead exemption.Oftentimes, people opt to maintain mortgage payments and car payments in order to retain the property secures the solutions.
Chapter 7 bankruptcy is so called because its law is found in Chapter 7 of the federal Bankruptcy Code. This form of bankruptcy is also called "straight" or "liquidation" bankruptcy because a bankruptcy trustee might sell (or "liquidate") some of your property in order to repay your creditors. In Chapter 7, your trustee also cancels many, if not all, of your outstanding debts. Who is a bankruptcy trustee? A trustee is assigned to your case by the Bankruptcy Administrator’s Office. The trustee is most often a lawyer with experience in bankruptcy law, who will review your petition, administer your estate, and run the meeting of the creditors, as well as assuring that there is no fraud. You would receive a fastpass for Chapter 7 if you are a disabled veteran who incurred debt while in active military service or if your debt has come primarily from running a business. Others are subject to eligibility requirements, including your current monthly income (comparative to the median family income in North Carolina) and your previous bankruptcy history. Likewise, you may not have defrauded creditors. These requirements and others are taken into consideration when ruling on your eligibility for Chapter 7.Contact Today