Debtors must pass the legally required ‘means test’, which checks whether the debtors’ income is higher than certain limits, to determine whether they’re eligible for chapter 7 bankruptcy. Debtors have the right to hold on to assets that have been exempt from being taken from them based on certain law-allowed exemptions that protect part of their property. There’s usually little or no nonexempt property in these cases to be sold. However, if any assets get liquidated by the trustee, only creditors holding unsecured claims (not supported by a collateral) and who have filed a proof of claim with the bankruptcy court for the particular debtor(s)’ case(s) would be eligible to receive any of the proceeds to satisfy all or part of their claims.
Learn more about the differences between chapter 7 and chapter 13 bankruptcy here.
Want to file for Bankruptcy? Contact a Bankruptcy 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