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.

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

• Bankruptcy Chapter 7 And Chapter 13 Discharge - a comparison
• Bankruptcy Discharge Exceptions - certain debts excepted from discharge
• Bankruptcy Discharge Objections - denying a discharge of all debts

See also

• Chapter 11 - reorganization
• Chapter 12 - famers and fishers
• Chapter 13 - individuals with regular income

External links

Footnotes

Notes

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