Chapter 7 Liquidation

Liquidation refers to discharge of debt by selling assets to pay off creditors. In a Chapter 7 bankruptcy the court turns assets over to a trustee assigned to the bankruptcy. The trustee holds a liquidation sale of assets and transfers the money from proceeds to the creditors listed in your bankruptcy petition. Certain assets are exempt from liquidation, and usually as a debtor you will be able to keep much of your property.

Both businesses and individuals may file for Chapter 7 or liquidation bankruptcy as it is often called. During liquidation of a business, all business operations must cease as soon as the bankruptcy petition has been filed.

At Bailey & Galyen, our bankruptcy attorneys assist individuals and businesses with the liquidation of assets. We will be happy to help you decide whether liquidation under Chapter 7 is the right option to resolve your financial situation. We will help you determine which assets are exempt, which assets are not exempt, file all necessary information and paperwork for your petition, and guide you through the liquidation process.