Are you dealing with bankruptcy under the clause of chapter 7? If these terms sound alien to you, do not worry. A lot of people find them as such. However, when chapter 7 bankruptcy does indeed touch you, you should start worrying. When you are involved in a chapter 7 bankruptcy, this means that all the assets of the debtor which includes all businesses that are owned by him or her will be liquidated. The only exceptions to liquidation are the properties of the debtor which are seen as vital to the living of the debtor and his or her dependents. The exception includes the home or residence of the debtor. Indeed, chapter 7 bankruptcy is sometimes called liquidation bankruptcy. A lot of businesses who have gone sour commonly apply for this kind of bankruptcy. They are quite common and may constitute up to 75% of all bankruptcies which are filed.
The liquidated assets will then be divided by the court. The assets will first be given by priority to the different creditors. Frequently, the first institution which will be given priority is the government. As such, the liquidated portions will first be given for the debtor’s unpaid taxes. Afterwards, the secured creditors will be given next priority. If you are involved in this kind of problem, you are best secured by Litchney Law Firm, P.C. They have the best team of legal experts which can help you sort out your problem. Visit them now and they will help facilitate your legal worries in connection with bankruptcy and more. Surely, you will never be in better hands.