Chapter 7 Bankruptcy

Below is an explanation of Chapter 7 bankruptcy and how Tampa, Florida bankruptcy lawyers can help individuals and businesses. Feel free to read about how Chapter 7 works, or simply take our free online evaluation to find out if you qualify for this type of bankruptcy.

Chapter 7 (”straight bankruptcy”, or liquidation) is one of the two most common forms of bankruptcy for consumers in Tampa and in the United States. In Chapter 7, a person in debt gives up “non-exempt” assets to a trustee who then sells the assets and distributes the money to the person’s unsecured creditors. In exchange for doing this, often the person is discharged from some debt, as long as he or she is not guilty of certain “inappropriate behavior” (e.g. concealing financial records) and certain debts (e.g. spousal and child support, student loans, some taxes).

Often, an individual filing Chapter 7 only owns exempt property (e.g., clothes, household good, an older car) and would not have to surrender any assets for liquidation. Chapter 7 relief is available only once in an eight year period.

For businesses, filing under Chapter 7 means that the business stops operations unless the Trustee decides otherwise. In some cases, the company’s employees would lose their jobs. In other cases, divisions of the company would be sold intact to other companies.

To determine how Chapter 7 would apply to you and to see how much debt you may be forgiven, fill out our free evaluation and a Tampa bankruptcy attorney will contact you.