[GRAPHIC: Rothschild & Ausbrooks, PLLC, ATTORNEYS AT LAW, 615-866-2265, Board Certified Consumer Bankruptcy Law Specialists, 1222 16th Avenue South | Suite 12 | Nashville, TN 37212]
EDGAR ROTHSCHILD: The purpose of a Chapter 7 bankruptcy is to get somebody a fresh start as soon as possible. And the process takes somewhere between 90 and 120 days start to finish in a typical no-asset bankruptcy case.
If they have assets over and above what the law says they can keep to make their fresh start, then the trustee who is appointed to administer the case will liquidate or sell those assets to pay creditors. That's the general idea.
MARY BETH AUSBROOKS: If you have more property than what the law says then you may lose some of your assets in exchange for getting that relief of having your debts disappear. A Chapter 7 bankruptcy is a complete bankruptcy with the exception of certain non-dischargeable debts like taxes, student loans and child support.
EDGAR ROTHSCHILD: In order to file a Chapter 7 and have it pass muster with the United States trustee, a debtor either has no income available to pay the unsecured creditors or there is some compelling to file a Chapter 7 as opposed to a Chapter 13 if they fail the means test.
If a client is current on their mortgage, they can keep their home in Chapter 7 by reaffirmation. The goal in any bankruptcy case is to get a discharge of debt and that's a court order that says that the debts are uncollectible forever and the stay that went into place at the beginning of the case becomes a permanent injunction and it's backed up by the courts and of course it's backed up by our office if there's a problem.
[GRAPHIC: Rothschild & Ausbrooks, PLLC, ATTORNEYS AT LAW, 615-866-2265, Board Certified Consumer Bankruptcy Law Specialists, 1222 16th Avenue South | Suite 12 | Nashville, TN 37212]
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