Homework Questions? Ask a Tutor for Answers ASAP
Chapter 7 of the Bankruptcy Act is designed to do which of the following?
Chapter 7 Bankruptcy designed so that the person can resort fresh start. In fact, filing bankruptcy under Chapter 7 may be breathing room from debt and it allows to rebuildt the credit status. Chapter 7 is a powerful tool and it wips unsecurd debts like credit, medical bills, payday loans etc. Chapter 7 of Title 11 is the United States Code which is known as Bankruptcy Code. The code governs the proess of liquidation under bankruptcy laws of the United States. In the United States, Chapter 7 is the most common form of bankrupcy.
The individuals who have place of business in United Sates and own the property in the United States can file bankruptcy in Federal Court. It is straight bankruptcy or liquidation. However, the petition cannot be entertained where it is already dismissed before 180 days of the filing. The advantage of the Chapter 7 is that the individual can keep certain property though bankruptcy. The value of such exempted properties varied from State to State of the United States. In case of the Business entities, a trustee is appointed to sell the company’s assets and the money is used to pay the debts.