The main goal under any filing in bankruptcy is to give one, who is burdened with debt, a fresh start. A Chapter 7 bankruptcy is the most common form of bankruptcy filing, accounting for over 65% of all consumer bankruptcy filings. A filing under Chapter 7 bankruptcy is often called the ‘liquidation chapter’ or a ‘straight bankruptcy’ and generally follows the following senario. A debtor files a petition with the court, along with a schedule of assets and creditors, then a trustee is appointed to administer the sale of nonexempt property. The primary role of the trustee is to pay the secured and sometimes unsecured creditors, from the proceeds of the sale of property, in accordance with United States Bankruptcy Code.
Procedures For Buying Property From The Bankruptcy Court
Information for Consumers (PDF Document)