In Alabama, claimants file for chapter 7 when they want to complete a bankruptcy claim quickly or if they qualify for chapter 7 only. The process requires the claimant to surrender ownership of the assets and sell them to pay off their debts. A Chapter 7 Bankruptcy Attorney in Wetumpka AL provides insight into how the liquidation process works and what is expected of the claimants.
Providing Details About Assets
The claimant must provide details about their assets including title or deed information to their attorney. The claimant must surrender all titles and deeds to the attorney when they are included in the claim. The attorney must conduct an assessment to determine that the claimant is the legal owner of each asset.
Appraisals for Assets and Reviews of Debts
The trustee assigned to the chapter 7 case will conduct an appraisal for all assets included in the claim. They must review all debts listed in the claim and compare these valuations to the appraised value of the assets. The trustee determines what methods are used for the sale of the assets based on the debt valuation.
Starting the Liquidation Process
During the liquidation process, the trustee will conduct private sales as well as submit assets for auction to generate the needed proceeds. This could include quick sales for real estate to ensure that the property sells within the allotted amount of time assigned to the claim. These cases are usually completed within a six-month period.
What Claimants Should Know
Any property that isn’t covered by the state’s bankruptcy exemptions is fair game for sale through liquidation. Claimants can acquire new properties after the filing date on their claim, and any wages they earn after this date aren’t accessible to creditors. Creditors cannot file a legal claim against the claimant after the claim is filed. For more information, visit here.
In Alabama, claimants file for chapter 7 when they need to eliminate debts quickly and achieve a fresh start. The process involves the sale of all non-exempted assets to pay off all debts included in the claim. Claimants who need to start the process contact a Chapter 7 Bankruptcy Attorney in Wetumpka AL through Courtney & Mann LLP today.