Petitioning for chapter 7 bankruptcy Pomonaallows qualified debtors to discharge all unsecure debts (ie credit cards, medical bills, evictions and repossessions) and in some cases allows debtors to discharge tax debts.
Chapter 7 is also called a “liquidation bankruptcy.” This is the type of bankruptcy where your nonexempt assets – if any – are liquidated by the U.S. Trustee, and the proceeds used to pay towards the claims made by your creditors. There could be a means test to determine eligibility which must be passed before filing this type of bankruptcy.
As with personal bankruptcy, a business Chapter 7 is meant to immediately liquidate the debtor’s nonexempt assets. The US trustee takes charge of the business and immediately begins the process. Once these business’ assets are liquidated, the creditors may file claims with the court for a share of the liquidated assets.
Through the course of petitioning for chapter 7 Pomona, a trustee is selected by the court to determine whether assets are available for liquidation.
Call the Hedtke Law Firm today to determine if you are eligible for Chapter 7 in Pomona.