What is Chapter 7 Bankruptcy?

A Chapter 7 bankruptcy case sometimes goes by the official name liquidation or sometimes straight bankruptcy. The United States Trustee (UST) (a division of the Department of Justice) picks a panel trustee to administer your case. The trustee is a lawyer, usually with considerable bankruptcy experience, but is not a government or court employee.

In theory, you are supposed to turn over any non-exempt assets (if you have any) to the trustee. Then the trustee is supposed to sell your assets to a willing buyer, and divide the proceeds among your creditors in proportion to the claims that they file, as far as the money will go.

If you are bankrupt, contact a bankruptcy attorney augusta now.

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