Chapter 7 Bankruptcy: What Happens After Liquidation?
Chapter 7 bankruptcy is one of the most popular forms of bankruptcy and can provide you with a way to eliminate your debt. After you have begun the process of filing for Chapter 7, you need to know what to expect at the end of the process.
Liquidation of Assets
During the chapter 7 bankruptcy process, a bankruptcy trustee is going to look over all of your assets. It is their job to locate assets that they can sell in order to provide some money to your creditors. If they locate any assets that they can liquidate, they will take them and sell them. Therefore, you should be prepared to lose some of your property during this part of the process.
Discharge
After the trustee and the court is satisfied that you do not have any other assets to liquidate, they are going to discharge your debt. This means that all of the debt that is not exempt will be eliminated from your record. For example, if you had large credit card balances, these balances will be completely erased. At this point, your creditors will not be able to come after you any more for repayment of your original debt.
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