Chapter 7 Bankruptcy

By: Abby and Connor

Why and when would you choose chapter 7 bankruptcy?

You use chapter 7 bankruptcy when you have a lot of debt and aren't able to pay it off.

Who is chapter 7 bankruptcy for?

Chapter 7 bankruptcy is for individuals and also businesses. Once you file you are assigned a trustee from the government. That trustee will liquidate some of your assets.

When you file....

  • You can file every six years.

  • Stays on your credit report for up to ten years.

  • You lose all your credit cards.

  • The process usually takes 3-6 months to complete.

What it involves.

- Costs around $335

- Usually only takes one trip to the court house.

Vocabulary

Liquidate-


  • Selling assets that aren’t necessities and giving profits to creditors.


Trustee-


  • An individual person or member of a broad given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.