Individual debtors seeking bankruptcy protection normally file under Chapter 7 of the Bankruptcy Code. Under this chapter of filing, the bankruptcy trustee sells nonexempt assets of the debtor. The proceeds of such sale are used to pay creditors in accordance with the regulations of the Bankruptcy Code. In addition, the Bankruptcy Code will allow the debtor to keep certain property, which is deemed exempt; but a trustee will liquidate the debtor’s remaining assets. Debtors seeking bankruptcy protection under Chapter 7 should realize that the filing of a petition may result in the loss of property. A distinguishing characteristic between a Chapter 7 bankruptcy filing and Chapter 13 is that there is no plan of repayment in a Chapter 7 case.

Those among us who have lost their jobs or had their hours cut back face many fears. Many people are struggling to get all their bills paid, and some are on the brink of losing their homes.