What is Chapter 7 Bankruptcy in New Haven, IN?

The United States bankruptcy codes are divided into chapters, and each chapter is divided into sections. The most common type of bankruptcy is chapter 7. When people think of bankruptcy, they are likely thinking of chapter 7 bankruptcy; it is a simple proceeding that is useful for companies or individuals.

What is Chapter 7?

If you cannot pay your debts and do not think you will ever be able to, you can file for chapter 7 bankruptcy in New Haven, IN. When you file this type of bankruptcy, the court will appoint a trustee over your assets. That trustee can be an attorney, or it can even be you. They will then sell your assets, as well as distribute the money to your various creditors.

Not everything you own has to be sold. The things that are not sold are considered “exempt” assets. When you work with a great specialist such as Fred Wehrwin, P.C., you will be able to choose what your exempt assets are.

What Can You Keep?

What you can keep during a chapter 7 bankruptcy proceeding differs depending on how extensive your debt is as well as how your trustee is. If you want to keep certain things, you need to work with a debt relief specialist to ensure that those certain things are protected. Furthermore, you will need to make sure you are leveraging enough assets to cover as much of your debts as possible.

Oftentimes, you will not have to cover every single dollar that you owe, but will be able to negotiate for lump sums. You should keep in mind that your creditors want as much of their money back as possible; they will likely not let their desire for a full-payment stop them from accepting a partial settlement. A good debt relief specialist is very important in this case. You can also connect them on Facebook.

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