Starfish Food

Bankruptcy can be requested not only by creditors, but also by individuals or organizations who are in debt. If it is tough to repay debt, declaring the bankruptcy could be the right solution to credit problems. Out of six basic kinds of under the Bankruptcy Code, Chapter 7 Bankruptcy is a liquidation of non-exempt assets to pay obligations. In a court-supervised process, a court designates a trustee who liquidates the non-exempt assets of the debtor’s estate and makes distributions to creditors.

The Bankruptcy Code allows the debtor to keep certain exempt property, but a trustee will liquidate the debtor’s remaining assets. According to the amendments to the Bankruptcy Code passed in to the Bankruptcy Abuse Prevention and Customer Protection Act of 2005, if a debtor’s revenues is above certain thresholds, the debtor would not be suitable for chapter 7.