Facing possible bankruptcy is a difficult and scary process. A Chapter 7 bankruptcy is a proceeding in which a debtor has the inability to pay his or her debts. A trustee is appointed to administer the bankruptcy estate by liquidating unprotected assets, and any proceeds are used to pay off debt. Most individuals filing for Chapter 7 bankruptcy are allowed to keep certain exempt property, but a trustee will liquidate the unprotected property in order to maximize the recovery to creditors. Some liens, however, such as real estate mortgages and car loans, may survive.
The goal of a debtor in most any bankruptcy is to discharge (i.e., obtain a legal release) existing debts and allow for a fresh start. In other words, when the discharge is granted, the debtor is legally released from the debts that were incurred before filing for bankruptcy. The creditors are entitled to share in the proceeds obtained from the liquidation of non-exempt assets. Under Chapter 7, the amount the creditors will get is fixed by the value of the non-exempt assets. The experienced attorneys at DelCotto Law Group make it their goal to help their clients make informed decisions that will be most beneficial when preparing to face possible bankruptcy. They will evaluate eligibility for Chapter 7 and evaluate assets to discern which can be retained, as well as gather information in order to assist in evaluating all available options and assessing the pros and cons of each.
The attorneys at DelCotto Law Group are knowledgeable in all areas of bankruptcy law. They know what to expect in each situation, have usually seen it all before, and can evaluate whether their clients can avoid filing for bankruptcy. However, if a situation does not allow for avoiding the inevitable, DelCotto Law Group can help make the difficult process of filing for bankruptcy go as smoothly as possible, minimizing any surprises and assisting in working through the process in an educated and thorough manner.