Thomas K. McKnight - Bankruptcy Law Firm in Tustin, California

‍

¿Qué es el Capítulo 7?

Bankruptcy is a serious business, so you have to understand it clearly. Chapter 7 of Title 11 in the United States bankruptcy code controls the process of asset liquidation. A bankruptcy trustee is designated to liquidate nonexempt assets to pay creditors; after the proceeds are drained, the remaining debt is absolved. There are eligibility requirements to file Chapter 7, such as the borrower must have had no Chapter 7 bankruptcy discharged in the preceding eight years and the applicant must pass a means test. This procedure is also referred to as "straight" or "liquidation" bankruptcy.

El Capítulo 7 de la Ley de Quiebras

In Chapter 7 bankruptcy, the absolute priority rule designates the order in which debts are to be paid. Under this regulation unsecured debt is separated into classes or categories, with each class receiving priority for payment. Secured debt is debt backed or secured by collateral to lower the risk associated with lending, such as a mortgage.

Unsecured priority debts are paid first. Examples of unsecured priority debts are tax debts, child support, and personal injury claims against the borrower. Secured debts are paid next. Last is the payment of nonpriority, unsecured debt with funds remaining from the liquidation of assets. If there are not enough funds to pay the non-priority unsecured debt, then the debts are paid on a pro-rata basis.

‍

Para obtener más información sobre el capítulo 7 y el capítulo 13 de bancarrota, o cómo presentar su bancarrota en Tustin CA, póngase en contacto con Thomas K McKnight LLP al (800) 466 - 7507 o visite nuestro sitio web en TKMLLP.com para una Consulta Gratuita. 

‍