All You Need to Know About Chapter 7 Bankruptcy and How it Works in Greenbelt

There are various types of bankruptcies you can file in Greenbelt. One of the most common and probably the easiest is chapter 7. Ideally, it works to clear away most unsecured debts that you may be having. Notably, when you are behind on your bills and do not have the means to afford monthly payments and daily expenses. Greenbelt, MD can be seen here.

How It Works

The court places an automatic temporary stay on your current debt when you file for this type of bankruptcy. In the end, the creditors will stop collecting payments, garnishing your wages, foreclosing on your home, repossessing property or evicting you. The court takes the legal ownership of your property and appoints a bankruptcy trustee to your case. Click here to read about Signs that You Should File for Chapter 7 Bankruptcy in Greenbelt.

Role of the Trustee

The trustee who the court appoints reviews your finances and assets while overseeing your chapter 7 bankruptcy case. This may involve selling certain property (nonexempt property) and use the proceeds to settle your debt by paying the creditor.

You Don’t Lose Everything

Many people are ever worried about the properties they lose when they file for chapter 7 bankruptcy. The truth is, the rules may differ from state to state, but the underlying fact is that there is an exemption on certain assets such as automobiles, personal items, etc. 

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