Turn to
Wisconsin
Bankruptcy
Guide

for straight
talk about
bankruptcy
and
debt relief.
award.png Topic Contributors
Most recent editors: Wikild BStaff 5
Most number of edits: Wikild BStaff 5
Can you improve this topic? Find out how!

Chapter 7

Chapter 7 of the Bankruptcy Code is entitled “Liquidation” and is found in Title 11 of the United States Code. 11 U.S.C. 701, et. seq.

Table of contents for this topic:

Overview

Chapter 7 procedure

A Chapter 7 bankruptcy case begins with the filing of a petition. E.g., 11 USC 301 and Bankruptcy Rule 1002 (voluntary cases). The debtor then files financial disclosure documents and, a month or two after the case began, meets with the Chapter 7 trustee and any creditors who appear to answer questions.

The Chapter 7 bankruptcy involves two conceptually different activities:

First, individual(1) debtors are seeking a discharge. Creditors have approximately two months after the trustee meeting to request that a debtor not receive a discharge or that a particular obligations be excepted from the discharge.

Second, the trustee is seeking to recover and liquidate any substantial non-exempt assets to create a bankruptcy estate from which to make a distribution to creditors.

The case is closed once:

  • (a) the Court has (i) issued or denied a discharge and (2) made a ruling on any request for a determination regarding the dischargeability of any debts and
  • (b) the trustee has either (i) determined that there are no assets for distribution or (ii) distributed any assets the trustee has recovered.
Thus, it is possible for a case to remain open for quite some time after either the debtor has a discharge (case remains open for trustee to administer assets) or the trustee has made a "no distribution" determination (case remains open for court to rule on a request that the debtor be denied a discharge or that a certain debt be excepted from the discharge).

Structure of Chapter 7

Chapter 7 is divided into five subchapters:

  • I - Officers and Administration
  • II - Collection, Liquidation, and Distribution of the Estate
  • III - Stockbroker Liquidation
  • iv - Commodity Broker Liquidation
  • V - Clearing Bank Liquidation

Discharge

See generally Bankruptcy Discharge

The Chapter 7 discharge is found at 11 USC 727.

Reaffirmation

Main topic Bankruptcy Reaffirmation

A Chapter 7 debtor may formally "reaffirm" a debt and, thereby, except it from the general Chapter 7 discharge.

See also

See also

External links

Footnotes

Notes

1 : Entities cannot receive a Chapter 7 discharge. 11 USC 727(a)(1).


Topic revision: r8 - 23 Sep 2010 - 23:09:10 - Wikild BStaff 5
 
Wiki Law Database is brought to you with support from
Freund Law Office
You Have A Friend at Freund Law Office
This site is powered by Foswiki2014 HOFnet, LLC. All rights reserved. WikiLDBTM is a protected trademark of HOFnet, LLC. Other marks or names cited herein may be trademarks or registered marks of their respective owners. Use or display of third-party marks is not a representation of affiliation, sponsorship or endorsement by, of, or for this site or HOFnet, LLC. Use of this site is subject to express Terms of Use, Privacy Policy and Disclaimers. By using this site you agree to abide by these terms.