At Cibik & Cataldo, P.C., no financial decision is ever taken lightly. Your livelihood depends on your money, and debt can get in the way. Declaring chapter 7 bankruptcy is a very difficult decision; our attorneys never try to pressure anyone into making a decision. Instead, we examine your financial decision, give you the facts and let you take your time to determine what the next step should be. When you decide, we’ll be ready to help you move forward, getting you on the path to debt relief as quickly as possible.
Chapter 7 bankruptcy, sometimes called straight bankruptcy, is a financial necessity for individuals or businesses that simply cannot pay their debts. The biggest difference between chapter 7 and chapter 13 bankruptcy is that chapter 7 involves a liquidation of debts, meaning that property, business and other belongings are subject to forfeiture. Another major difference is that with chapter 13, debts and finances are planned out so that creditors can be repaid; with chapter 7, the proceeds from the liquidation of assets are paid to creditors, but not all outstanding debts have to be repaid.
Chapter 7 can apply to both individuals and businesses. However, the two are often treated differently. Businesses are given a chapter 7 trustee who is tasked with evaluating a financial situation and then selling off the assets of a business to repay the creditors who are owed. Once the business is shut down, employees are either let go or entire departments are sold to another company. The corporation does not receive a chapter 7 bankruptcy discharge but is instead completely dissolved.
Individuals who file for chapter 7 bankruptcy are allowed to keep certain exempt property, but only a court can determine what belongings that might include. Similar to how a business is treated, individuals property is sold off to repay creditors. At the conclusion of chapter 7, most forms of an individual’s debt are discharged so that they are no longer required to pay creditors. Not all debt can be discharged, however; common exception from a discharge include child support, fines and other forms of debt that originate from the government.
“Bankruptcy – A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of Title 11 of the United States Code (the Bankruptcy Code).” – USCourts.GOV
Navigating the waters of chapter 7 bankruptcy can be difficult without a guide. When you enter the Philadelphia offices of Cibik & Cataldo, P.C., you can expect to leave with a better understanding of chapter 7 bankruptcy and what’s entailed in the process of declaring.
For 35 years, Cibik & Cataldo, P.C. has provided debt relief to thousands of businesses and individuals in need of resolving debt around Philadelphia County, Montgomery County, Delaware County, Bucks County and Chester County. Whether dealing with debt consolidation, relief, foreclosure and car repossession, our lawyers help provide a way out.
To learn more about what Cibik & Cataldo, P.C, can provide to those considering filing for chapter 7 bankruptcy, contact us today.
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seek bankruptcy protection under federal law