Chapter 7

Facing possible bankruptcy, either personal or through a business, is difficult. A Chapter 7 bankruptcy is a proceeding in which a company stops all operations and goes out of business. A trustee is appointed to liquidate the company's assets, and the proceeds are used to pay off debt. Individuals filing for chapter 7 bankruptcy are allowed to keep certain exempt property, but a trustee usually liquidates much of the property in order to maximize the recovery to creditors. Some liens, however, such as real estate mortgages and car loans, may survive.

The goal of a debtor in most any bankruptcy is to discharge (i.e., obtain a legal release) of existing debts and allow for a fresh start. In other words, when the discharge is granted, the debtor is legally released from the debts that were incurred before filing for bankruptcy. The creditors are entitled to share in the proceeds obtained from the liquidation of non-exempt assets. Under Chapter 7, the amount the creditors will get is fixed by the value of the non-exempt assets.

The experienced attorneys at DelCotto Law Group make it their goal to help their clients make informed decisions that will be most beneficial when preparing to face possible bankruptcy. They will evaluate eligibility for Chapter 7 and evaluate assets to discern which can be retained, as well as gather information in order to assist in evaluating ALL available options and assessing the pros and cons of each.

In representing creditors in Chapter 7, the Firm evaluates if the creditor’s claim might be non- dischargeable for any number of reasons mandated by the Bankruptcy Code and laws. DelCotto Law Group can assist in recovering property out of bankruptcy and/or negotiate reaffirmation agreements, and has handled many non-discharge adversary proceedings.

The attorneys at DelCotto Law Group are knowledgeable in all areas of bankruptcy law. They know what to expect in each situation, have usually seen it all before, and can evaluate whether their clients (individuals or businesses) can avoid filing for bankruptcy. But, if a situation does not allow avoiding the inevitable, DelCotto Law Group can help make the difficult process of filing for bankruptcy go as smoothly as possible, minimizing any client surprises and assisting in working through the process in an educated and thorough manner.