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Chapter 7 Bankruptcy - California Chapter 7 Bankruptcy ("Liquidations")
Chapter 7 bankruptcy is the liquidation variety of a bankruptcy in which property is sold (or liquidated) to pay off as much of your debt as possible, while leaving you with enough property to start over or have a "second chance." In other words, Chapter 7 of the bankruptcy code provides for the liquidation or sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.
With a Chapter 7 bankruptcy, the debtor will turn over all non-exempt property to the bankruptcy trustee who will convert it to cash so they can distribute to the creditors. It can take several months before the debtor receives a discharge of all dischargeable debts -- some estimates show this can take about 4 months. In most cases, the debtor doesn't have any assets that he/she would lose which will provide for a "fresh start" within a relatively short period of time with a Chapter 7 bankruptcy.
Notably, one of the main purposes of Bankruptcy Law is to give a person who is over burdened with debt an opportunity to wipe out their debt and have a fresh start.
More About California Chapter 7 Bankruptcy ("Liquidations")
Whether you have a Chapter 7 bankrupty case pending or if you are simply considering filing bankrupty, you'd do well to consult a Chapter 7 bankrupcy attorney or lawyer to help you learn where you stand legally, what your legal options are and what your best course of action would be. Having a general knowledge and awareness of California bankruptcy law is necessary to protect you, your family, your assets and your future. For legal advice on Bankruptcy Law, please consult Southern California Bankruptcy Attorneys or Southern California Bankrutpcy Lawyers in your area.
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