Dedicated Bankruptcy Attorneys
At BCN Law Firm we can help you navigate the intricacies of Chapter 7 Bankruptcy as an individual or for your business.
For Individuals:
Chapter 7 bankruptcy for individuals is a court-supervised process where a trustee oversees the liquidation of non-exempt assets. The proceeds are distributed to creditors, and most remaining unsecured debts—such as credit cards, medical bills, and personal loans—are discharged, offering a fresh start. Additionally, Chapter 7 provides relief from creditor harassment and wage garnishments through an automatic stay. While certain debts, like student loans and child support, cannot be discharged, Chapter 7 can help individuals rebuild credit over time by removing overwhelming debt.
A Chapter 7 bankruptcy will remain on your credit report for 10 years, but many individuals find that eliminating debt through bankruptcy can ultimately improve their creditworthiness.
For Businesses:
Chapter 7 bankruptcy for businesses typically results in the cessation of operations, with a trustee liquidating assets and distributing the proceeds to creditors. Unlike individuals, businesses do not receive a discharge of debt; instead, the business dissolves entirely. This process allows for an orderly liquidation of assets to satisfy creditors, protects secured creditors by ensuring they receive the value of collateral, and enables business owners to move forward without lingering debt obligations.
In some cases, employees may lose their jobs as the business closes, though parts of the company may be sold to other businesses, allowing some employees to retain their positions.
How BCN Law Firm Can Help
Frequently Asked Questions About Chapter 7 Bankruptcy
