Chapter 7 and Liquidation:Under Chapter 7, either a company or an individual can institute a bankruptcy proceeding. In case of a company bankrupt, the business of the company comes to an end. Bankruptcy and Petition:You have to file a bankruptcy petition in the court. The bankruptcy petition shall include detailed financial status of your income, assets, liabilities and exempted property. Consult an experienced bankruptcy attorney in your area before you file the bankruptcy petition in the court. Appointment of Trustee:In a bankruptcy proceeding of Liquidation, a trustee is appointed whose function is to review the bankruptcy petition, conduct meeting of the creditors, review whether the debtor is eligible for a discharge, collect the nonexempt property of the debtor, sell the property, and distribute the property among the creditors and investors. Discharge Notice:Under chapter 7, if you do not have assets to satisfy the claims of the debtor or any portion of the debtor, and if there are no objections filed by the creditors at the time of discharge hearing, then the court will discharge you from all the debts.
If there are no objections raised by the creditors, you receive a discharge notice from the court to discharge all your dischargeable debts. |
