Source: http://www.marktyoung.com/Chapter-7_PC/Overview-Chapter-7_PC.shtml
Timestamp: 2017-11-18 23:14:56
Document Index: 628143388

Matched Legal Cases: ['§ 727', '§ 544', '§ 341', '§ 343', '§ 523', '§ 303', '§ 303']

Chapter 7 - An Overview | Mark T. Young & Associates | Chattanooga Tennessee
The federal bankruptcy laws are complex, and an experienced advocate can help you navigate them efficiently. If you are contemplating filing for bankruptcy, contact an experienced bankruptcy attorney.
Chapter 7 bankruptcy protection enables qualified individuals to wipe away or discharge unsecured debts, while keeping most — if not all — of their possessions. At the Tennessee law office of Mark T. Young & Associates, we provide comprehensive Chapter 7 bankruptcy representation. We invite you to learn more about how Chapter 7 protection may be the best solution for your financial situation.
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Attorney Mark T. Young has more than 30 years of experience preparing and filing Chapter 7 petitions. His extensive experience and dedication to helping individuals live a debt-free life is demonstrated in the fact that he is a Certified as a specialist in Consumer Bankruptcy by the American Board of Certification consumer bankruptcy lawyer.
At the Tennessee law office of Mark T. Young, we prepare and file Chapter 7 bankruptcy petitions for individuals throughout Southeast Tennessee and North Georgia. Our dedication and attention to details enable us to file petitions effectively and efficiently. We are committed to helping individuals achieve debt relief.
Both individuals and businesses may find themselves with more debts than they can pay when due. In such cases, filing for bankruptcy may provide a solution to what seems like an insurmountable problem. Bankruptcy provides two basic forms of relief: (1) liquidation and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. An attorney at Mark T. Young & Associates in Hixson, TN, can advise individuals and businesses about whether Chapter 7 is the right choice for them.	The bankruptcy lawyer's goals are to help Chapter 7 debtors make a fresh start and ensure that creditors are paid.
Chapter 7 bankruptcies, also called "straight bankruptcies," are the most common form chosen by individual consumers. In a Chapter 7 consumer bankruptcy, the individual debtor's estate is liquidated and the assets are distributed to creditors. Partnerships, sole proprietorships and corporations are also eligible to file under Chapter 7. However, unlike individuals, these business entities are not eligible to receive a discharge. 11 U.S.C. § 727(a)(1). Chapter 7 business liquidations are conducted in significantly the same manner as Chapter 7 consumer bankruptcies — many of the business's assets are sold and the proceeds are divided among the company's creditors. Partnerships or corporations that wish to keep doing business may decide that Chapter 7 is not the best option because after liquidation and distribution, the business ceases to exist.
A Chapter 7 case begins with the debtor's filing of the petition with the bankruptcy court, which triggers the automatic stay — bankruptcy terminology for the termination of debt-collection activity. Filing a petition does not stay certain types of actions, and the stay may only be in place for a limited period of time. As long as the automatic stay is in place, creditors may not initiate or continue lawsuits against the debtor, garnish wages or call the debtor demanding payments.
The court appoints a trustee who oversees the Chapter 7 case and liquidates the debtor's assets in order to pay off the debts. In many cases, however, the debtor's assets are exempt or already subject to valid liens, so there will be no assets to liquidate. Most consumer bankruptcies are "no asset" cases in which there is nothing available for the creditors. The trustee can also try to recover money for the estate under the trustee's "avoiding powers." These powers include the power to set aside preferential transfers to creditors within 90 days of filing; undo security interests and pre-petition transfers that were not properly perfected; and pursue fraudulent conveyance and bulk transfer claims under state law. 11 U.S.C. § 544. If there are assets, the trustee collects the sale proceeds in a fund from which the debts are paid to the extent possible. Under section 726 of the Bankruptcy Code, property is distributed according to six classes of claims; each class must be paid in full before creditors in the next lower class are paid anything.
The trustee holds a meeting of creditors "[w]ithin a reasonable time" after the debtor files the petition. 11 U.S.C. § 341(a). During this meeting, the trustee and creditors may ask the debtor, who is under oath, questions. The debtor must attend the meeting of creditors and answer questions about his or her property and financial matters. 11 U.S.C. § 343.
When all of the proceeds are distributed, most remaining unpaid debts are discharged, meaning that they no longer exist and the debtor has no further obligation to pay them. Some debts, such as student loans, damages resulting from the debtor's willful or malicious acts, debts incurred by giving false financial information, domestic support obligations and some debts incurred just prior to filing for bankruptcy, are non-dischargeable. 11 U.S.C. § 523. A court may deny a discharge if the debtor failed to keep or produce financial records; failed to satisfactorily explain any loss of assets; committed perjury; failed to follow an order of the court; fraudulently transferred or hid property; or failed to complete the required financial management course.
Chapter 7 bankruptcies may be "voluntary" or "involuntary"
Most Chapter 7 bankruptcy cases are filed by the debtor and are thus considered "voluntary bankruptcies." Not all bankruptcy proceedings are voluntary, however. Under Chapter 7, creditors have the option of filing for relief against the debtor, in which case the proceeding is called an "involuntary bankruptcy." Involuntary bankruptcies are allowed only when certain minimum thresholds are met; for instance, there must be a minimum number of creditors and a minimum amount of debt. 11 U.S.C. § 303. The debtor has the right to file a response to an involuntary petition, after which the court will determine whether the creditors are actually entitled to relief. If the court dismisses an involuntary bankruptcy filing because it has no merit, the creditors may be ordered to pay the debtor's reasonable attorneys fees, damages for any losses the debtor experienced because of the bankruptcy and even punitive damages to punish the creditors for the frivolous or abusive filing of a petition. 11 U.S.C. § 303(i).
A bankruptcy lawyer can help debtors overcome obstacles to the repayment of debt. Because the Bankruptcy Code affords various forms of relief, including liquidation under Chapter 7, it is recommended that you seek the advice of a lawyer before making major financial and legal decisions. Contact Mark T. Young & Associates in Hixson, TN, today to schedule a consultation with a bankruptcy attorney to discuss your options.