Liquidation & Chapter 7 Bankruptcy

If you are curious about Chapter 7 bankruptcy, you will want to familiarize yourself with the concept of liquidation.

Chapter 7 bankruptcy, also known as bankruptcy liquidation, allows you to sell your assets to pay off your outstanding debts. Although you will be allowed to dissolve some of your debts without paying them, the court may decide that some creditors need to be paid, thus necessitating the sale of your assets.

However, the process of liquidation is not entirely in your hands. Once you successfully file for Chapter 7 bankruptcy, you will be appointed a court trustee. This person will oversee the sale of your assets and determined which creditors, if any, will receive the profits of those sales. This enables you, the debtor, to lighten your debt load, while the creditors don"t experience a total loss.

When your financial situation becomes dire, contact a Chicago bankruptcy lawyer to explore your legal options.