Chapter 7 Bankruptcy in Glendale & Peoria Arizona

The goal of Chapter 7 bankruptcy is to discharge or obtain a legal release from existing debts and allow for a fresh start. 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.

Chapter 7 is used by individuals, partnerships, or corporations who have no hope for repairing their financial situation. In Chapter 7, the debtor's estate is divided into exempt and non-exempt assets. Exempt assets are those that the client may keep—usually homes and cars fall into this category. The rest is liquidated and the amount the creditors get is fixed by the value of the non-exempt assets. In most cases of individual bankruptcy, there are no non-exempt assets and creditors receive nothing.

Facing possible bankruptcy, either as individual or through a business, is difficult.

•  A company filing for Chapter 7 bankruptcy stops all operations and goes out of business. A trustee is appointed to liquidate the company's assets, and the proceeds are used to pay off debt.
  
• Individuals filing for bankruptcy are allowed to keep certain exempt property. Some liens may survive, such as real estate mortgages and car loans.

If you are in financial hardship and considering filing for bankruptcy contact a bankruptcy attorney like Michael J. Fatta immediately

Mr. Fatta makes it his goal to help his clients make informed decisions when preparing to face possible bankruptcy. He evaluates each client’s eligibility for Chapter 7 in Glendale & Peoria and evaluates assets to discern which assets you can retain.

Contact us today

If you are facing Chapter 7 bankruptcy in Peoria & Glendale, thinking about filing, or just have questions, contact us the Law Office of Michael J. Fatta for experienced, personal legal aid, today.