Chapter 7 Liquidation Overview

Business or Individual

• No limits on debt
• Cannot have discretionary income per mean testing based upon last six months income
• May lose business to trustee if trustee does not abandon business
• Can get trustee to abandon business and cars if no equity in exempt assets
• Can discharge personal guarantees
• Assets over and above none that are nonexempt they want to keep – will trustee abandon on sell back to them – 1-2 years to buy it
• Credit card balances on last 90 days may be nondischargeable as to consumer items, especially cash advances, so do not charge attorney’s fees there
• Trustee gets actual bank balance on date of filing based upon cleared checks
• Personal Injury proceeds, and tax refunds are assets
• Check for personal property that is not exempt