The use of chapter seven bankruptcy proceedings has become increasingly popular in recent years as the process has become known as liquidation or straight bankruptcy; the basics of chapter seven include the need for the assets of the person or business declaring bankruptcy to be liquidated and distributed amongst the creditors of the debtor.
Chapter seven bankruptcy has become popular because of the ease with which the process can be completed. The initial process requires a bankruptcy attorney to file two initial forms to start off the process, which includes the petition to the court for chapter seven to be declared and the matrix. The matrix is an important aspect of the process as it is a basic list of the names and addresses of all creditors of the debtor hoping to complete chapter seven bankruptcy.
Further papers must be filed within 14 days of the initial filing to move the process on to the courts, but an important step that must be met is the order of relief sent to all creditors listed on the matrix by the clerk of the court. Where alimony and child support payments are being made the ex-spouse of the debtor is given information of the bankruptcy filing and has the right to use state child support agencies to maintain their level of support.
The Radol Law Firm has years of experience in this practice area and can be of further assistance.