Bankruptcy Process Chapter 7 & 13

Federal Rules of Bankruptcy Procedure or Bankruptcy Rules, govern all local rules of each bankruptcy court. There are over 90 bankruptcy courts across the US. Most of the bankruptcy process is administrative and less time is spent in front of a bankruptcy judge than you would think. A chapter 7 debtor may not even see a bankruptcy judge unless there is an objection in his/her case.

The process for Chapter 7: A trustee takes over all assets of the debtor estate, liquefies the assets and then pays off debtors. The debtor has a right to retain certain exempt property. The debtor is relieved of liability and debts are discharged.

The process for Chapter 13: This is a better option for bankruptcy, the debtor has the option of holding on to his/her estate. If the debtor has a consistent source of income and can make payments to his creditors.
The bankruptcy process is very complex and requires a professional attorney so help you through the process. Learn more here.

Contact your trusted attorney to find out the best option for your bankruptcy case.