Chapter 7 bankruptcy liquidation

Law Office of 
Charles E. Andersen

Chapter 7 is also know as straight bankruptcy if you don't want to repay any debt, chapter 7 is an option to consider
Chapter 7 is also called a fresh start bankrutpcy
The US Trustee is a participant in a chapter 7 Hon. John C. Ninfo chief US Bankruptcy Court Judge US Bankruptcy Court
Law firm

of Charles E. Andersen




filing a chpater 7


Debt and Asset Liquidation under Chapter 7




In a Chapter 7 case, the trustee collects the property of the estate, reduces it to cash, and pays claimants in a prescribed order. Some key things to consider in dealing with this issue are:


(1) Ordinarily, secured creditors are paid out of their collateral.


(2) Unsecured priority claimants receive distribution ahead of the general unsecured creditors.


(3) If there is not enough money to pay all claims at a particular level, claimants within that level take a pro rata share.


(4) Liens for certain kinds of penalties can be avoided by the trustee, and tax liens are subject to subordination.


(5) Special rules apply to partnership debtors when there are insufficient assets to pay all the claims against the partnership. Questions arise as to whether the debtor should receive a discharge under Chapter 7. Look for any of the ten grounds for denial of a discharge (e.g., the debtor is not an individual, or she transferred property with the intent to hinder, delay, or defraud a creditor). If the facts do not show any of the grounds for denial, a discharge must be granted, although under appropriate circumstances, a discharge may be revoked. Finally keep in mind that the debtor may convert a Chapter 7 case to Chapter 11, 12, or 13 if the case has not been converted earlier and the debtor is eligible under the other chapter. Also, the court may dismiss a case for cause or if a consumer debtor has substantially abused Chapter 7 relief



Eligibility for Relief:  A person (individual, partnership, or corporation) that resides or has a domicile, a place of business, or property in the United States may be a debtor under Chapter 7, unless specifically excepted. (B.C. § 109(a), (b))


a. Exceptions: The following persons are not eligible to be debtors under Chapter 7 [B.C. §109(b)]:


(1) Railroads [B.C. §109(b)(l)];


(2) Domestic banks, insurance companies, credit unions, savings and loan associations, building and loan associations, homestead associations, cooperative banks, and other similar institutions [B.C. §109(b)(2)];


(3) Foreign banks, insurance companies, and other similar financial institutions, that are engaged in business in the United States [B.C. § 109(b)(3)]; and


(4) An individual or a family farmer who was a debtor in a case that was dismissed in the preceding 180 days because of the debtor's intentional failure to obey court orders or to appear before the court, or because of the debtor's request for a voluntary dismissal of the case following a party's request for relief from the automatic stay [B.C. §109(g)].


Chapter 7 Trustee


obtaining a chpater 7 discharge the bar date has passed arriving at the office
I hope he's in



sitting down to sign







Chapter 7 &13

If you qualify



  • Creditor Harassment
  • Stop utility shutoffs
  • eliminate payments on unsecured debts.
  • Improve bad credit
  • Surrender car, and other secured collateral without incurring a "deficiency"

**For Chapter 13 cases with wage order and balance paid through a trustee as part of a partial re-payment plan and not paid directly to the attorney. Court filing fee is extra.

  • Emergency Petitions filed
  • Ask to see a statement of clients rights and responsibilities


Free Consultation

Reasonable rates



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Signing the court papers shaking hands leaving attorneys office

200 William St. STE 204A
Elmira, NY 14901
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receipt of filing automatic stay order for relief section 341 Notice
meeting fo the creditors court discharge order debt wipe out