Those who find themselves struggling with debt for more than just a short period of time may have considered personal bankruptcy. Chapter 13 or Chapter 7 bankruptcy can be powerful tools for individuals who have severe financial struggles that can't be solved via a simple budget adjustment. However, personal bankruptcy is an involved process laden with many legal terms and processes that are rarely easy to understand. A local Chapter 7 bankruptcy attorney can offer answers to those in financial distress.
Chapter 7 bankruptcy is often known as liquidation bankruptcy. This is because when a person files for Chapter 7, that individual typically has to turn over a certain amount of personal assets to the bankruptcy estate. The estate, in turn, manages the sale of such assets in order to repay the debtor's creditors. Not all assets must go to the bankruptcy estate, however. Speaking with one's bankruptcy attorney can clarify this important aspect of Chapter 7.