“A chapter 7 bankruptcy case doesn’t involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds to pay creditors in accordance with the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. The Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.”
Still have questions about how chapter 7 bankruptcy filings work in Michigan? Read more about filing for bankruptcy on our website.
Want to file for Bankruptcy? Contact a Business Attorney in Ann Arbor to Help You!
If you need help filing for bankruptcy, consult a bankruptcy attorney in Ann Arbor for a free consultation on whether you qualify. (734) 665-4441
No comments:
Post a Comment