Chapter 7 Bankruptcy is What Most People Think of When They Hear Someone has Filed a Bankruptcy
Technically, it is a “liquidation proceeding” (as opposed to a “reorganization proceeding”) where a Chapter 7 trustee is appointed to liquidate a debtor’s non-exempt assets and take other actions designed to permit the Chapter 7 trustee to attempt to repay creditors. As a result of the generous exemptions available in Kansas, most people who file a Chapter 7 bankruptcy here will be able to keep all their property, while discharging their debt.
Who typically files for Chapter 7?
Most typical Chapter 7 bankruptcy filers have lost a job and fallen behind on bills, have recently been divorced, have incurred medical bills that can’t be paid, or have guaranteed a debt (business or personal) and can’t pay the debt.
Usually, a Chapter 7 bankruptcy is filed by individuals, although, depending on the facts, a Chapter 7 bankruptcy can be appropriate for a corporation, limited liability company or partnership.
