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






Claims and Interests:


    The filing of proofs of claims or interests, and the allowance of secured claims are accorded special treatment in a Chapter 11 case.

Proofs of claims or interests: In a Chapter 11 case, the court fixes (and sends notice of) a bar date, which operates as a deadline for proofs of claims or interests. However, a claim or interest that is listed in the schedules filed by the debtor is deemed filed (for the scheduled amount), unless it is scheduled as disputed, contingent, or un-liquidated. Therefore, in a Chapter 11 case, the holder of a correctly scheduled, undisputed, non-contingent, liquidated claim or interest is not required to file a proof of claim or a proof of interest.

Secured claims:


In a Chapter 11 case, both recourse and non-recourse secured claims are treated as recourse claims for the purpose of allowance. [B.C. 1111 (b)( 1 )(A)] Thus, while an under-secured creditor holding a non-recourse claim, either under an agreement or under applicable non-bankruptcy law, ordinarily cannot assert a deficiency claim for the portion of her claim exceeding the value of the collateral, the creditor is given recourse status under Chapter 11, with the effect being that the unsecured part of the claim will not be disallowed under Bankruptcy Code section 502(b)(l) (see supra, 502)..

(1) Example: Creditor holds a $500,000 claim secured by a first mortgage on Blackacre, which is valued at $400,000. The agreement between Creditor and Debtor provides that Creditor's claim is non-recourse, which means that Creditor may not seek a personal judgment against Debtor for any deficiency. Debtor files a Chapter 11 bankruptcy petition. Under section 1111(b)(l)(A), Creditor's claim will be treated as if it were a recourse claim, and thus the $100,000 deficiency will be allowed as a general unsecured claim. (Note that, absent this provision, the unsecured portion of Creditor's claim would not be allowable under section 502(b)(l) because of its non-recourse character.) Of course, Creditor also holds an allowed secured claim in the amount of $400,000 [B.C. 506(a)].

(2) Exceptions: There are a few situations in which a claim is not treated as if the holder has recourse, thus barring any unsecured claim for a deficiency:

(a) If the creditor does not have recourse, and the property is sold either under Bankruptcy Code section 363 (see supra 816 et seq.) or under the plan of reorganization [B.C. 1111(b)(l)(A)(ii)];

(b) If the creditor does not have recourse and, during the case (i) the collateral is abandoned or returned to the secured creditor, or (ii) the secured party forecloses on the property after having been granted relief from the automatic stay or;

(c) If the class to which the claim belongs makes the section 1111 (h) election by at least two-thirds in amount and more than half in number


Click here for Chapter 11 denial of confirmation.

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



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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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200 William St. STE 204A
Elmira, NY 14901
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meeting fo the creditors court discharge order debt wipe out