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Bankruptcy Code (view source)

Revision as of 00:15, June 17, 2023

674 bytes added , 00:15, June 17, 2023

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A '''Chapter 7''' bankruptcy provides for the total "liquidation" of the debtor's assets (the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors).

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In order to be eligible for Chapter 7, the debtor must satisfy a '''means test''', whereby the court will evaluate the debtor's income and expenses to determine if the debtor may proceed under Chapter 7.

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In order to be eligible for Chapter 7 as an individual person, the debtor must satisfy a '''means test''', whereby the court will evaluate the debtor's income and expenses to determine if the debtor may proceed under Chapter 7. Moreover, an individual debtor having mostly consumer debts must file a certificate of counseling.

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A business debtor would file for bankruptcy where it is organized or maintains its principal place of business or principal assets.

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The debtor must file with the court:

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{{cquote|(1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a statement of financial affairs; and (4) a schedule of executory contracts and unexpired leases. Fed. R. Bankr. P. 1007(b).<ref name="Rules">https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics</ref>}}

Chapter 7 bankruptcies are most common in the business realm, whereby a business declares total insolvency and seeks to cease doing business forever.

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As of 2023, the fees are

===Chapter 9===

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