SE Michigan Bankruptcy

Bankruptcy Law Firm

Bankruptcy Law Attorney
John Ceci PLLC

Chapter 7 Bankruptcy

A chapter 7 bankruptcy is also referred to as a liquidation proceeding. What this means is that you exempt as many assets as the law allows. Any assets that you cannot exempt will have to be turned over to the bankruptcy trustee.

The assets turned over to the trustee will be sold. The proceeds will be paid to your creditors according to the priorities established in the Bankruptcy Code.

But remember that in a typical chapter 7 case most debtors are able to exempt all the assets he or she owns. This means that there are no assets that must be turned over to the trustee. 

Chapter 7 is generally simplest and quickest form of bankruptcy. It is an option for individuals, married couples, corporations and partnerships.

Your ability to file Chapter 7 is determined by what is commonly called the means test. ​

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