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Bankruptcy Chapter 7 Discharge

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					Bankruptcy Chapter 7 Discharge
This post include basic info about Chapter 7 Bankruptcy Forms and other materials related to the
Bankruptcy chapter 7 (US bankruptcy law).

1. What is the purpose of Chapter 7 Bankruptcy Discharge?

The Chapter addresses the proceedings in a Bankruptcy Discharge. It is rather simple though.
First, you need to file an application for bankruptcy, which may be voluntary or involuntary as
mentioned before, to the court. The court, upon receiving the application, shall appoint a
Liquidator (or a Trustee of Assets as other called in the U.S.).

This Liquidator then shall perform actions to sell off all the non-exempt assets of the applicant
but retains the assets which are essential to the survival of the insolvent person. This
proceeding shall only be commenced when the Schedules and Statement of Financial Affairs
are officially made and duly signed by all related parties.

After such documents are signed, there will be a meeting among creditors in which, all the
trustees and creditors may raise questions that the debtor is subject to answer under oath. This
is called The 341 Meeting. Within 60 days upon the 341 Meeting, the creditors or trustees may
raise objection to the debtor's right to discharge under Chapter 7. In case of no such objection
is raised, the discharge proceedings shall continue.

2. Chapter 7 Bankruptcy Discharge of Debts: Post-Effect

After the proceedings of Chapter 7 Bankruptcy Discharge has been obtained from the Legal
Court, all dischargeable debts shall be made void and the creditors cancel all of their legal
rights and documents against the debtor. However, there is a common concern among those
Bankruptcy applicants that whether the family of the debtor shall be affected by the
proceedings? Frankly, the answer is Yes; however, it depends much on the actual
circumstances.

In case of a member's discharge of assets, the credit and public records of the other family
members shall be hold harmless. Even the neighbors or relatives of the debtor shall not
necessarily be informed of the bankruptcy as well. However, credit and public records of the
debtor and reporting agencies shall contain notes about Chapter 7 Bankruptcy Discharge and
this may have adverse effect on the debtor when he or she goes working or does business in
the future. Nevertheless, this blemish shall be deleted after 10 years.

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Apart from that, you can ref more bankruptcy forms, rules, discharge, exemptions, questions,
advantages and disadvantages, benefits at: http://www.davirec.com/bankruptcy-chapter-7/

				
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