When you file for bankruptcy, you are given the change to rise out of a financial crisis with a clean slate. The Chapter 7 Bankruptcy Code is the quickest and easiest way to achieve these results. How does it differ from Chapter 13? What are the negative aspects to Chapter 7 Bankruptcy?
Under the Chapter 7 Bankruptcy Code all non-exempt property is sold and the proceeds are distributed to the creditors to pay off the debt. Most of the time, the borrower has little or no assets to liquidate, so the “cleansing period” takes place quickly.
This process is often referred to as “liquidation” or a “straight bankruptcy”. With this type of bankruptcy, the borrower can start anew. In the process, most debts are discharged within months of filing the bankruptcy petition.
When an individual files Chapter 7 Bankruptcy, a trustee is appointed to administer all non-exempt property, sell what assets are available, and distribute the proceeds to the appropriate creditors. There are no payments made from the debtor to the creditors…a major difference from Chapter 13 Bankruptcy.
Under a Chapter 7 filing, the debtor receives a discharge on all debts that can be discharged, such as child support, most taxes, student loans, etc…One good thing is that the debtor is usually allowed to keep their primary residence and their car.
Whenever you have chosen bankruptcy as your best option, engage the services of a competent attorney who specializes in bankruptcy. Bankruptcy has clear, defined rules that must be adhered to. Once you have chosen your attorney, allow them to do their job and follow their advice…never be a micro manager. Delegate to your attorney…it is Empowering!
Being an entrepreneur has given me a deep appreciation for individuals who are success oriented and never give up. The drive to always “push through” is a trait of successful people.
I have been fortunate to associate myself with many successful individuals over my life. It began with my father who instilled in me the ability to step outside of the box…to create something out of nothing. He taught me the importance of integrity in business...traits that I have incorporated into the various business models I employ.
I spent the first ten years of my career in the medical field. I worked side by side with amazing individuals who put their own self-interests aside in order to nurture others back to good health. Many times I witnessed life and death situations. It was always humbling to experience the team-work that evolved around trying to save a lives.
As my career path evolved into the business world, not only could I bring those experiences into my persona, I saw a need to spread information…real information for real situations. A close friend of mine began to mentor me in aspects of blogging. He has given me incredible insight into how a blog should be developed…how to focus my passion for helping mentor people to becoming successful entrepreneurs. This passion for mentoring others began when I was a young child and continues today. It is not about me, but rather those who have influenced my life.
I am a work-out addict and a real “ski dog”. Sorry guys and gals…I do not “ride”. I live for deep powder and steep chutes. I love the feeling of looking over the edge of a steep run…feel my heart beat faster with that adrenaline rush and then “jump in”. I love golf…but I always wonder if I will ever break 100…lol! Most of all, I love my wonderful family…they are the best! Thanks for stopping by and I hope you feel empowered today.
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Martin Casper
