What is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy case is a liquidation bankruptcy. Liquidation is a procedure wherein a Trustee is appointed to represent your general unsecured creditors from a panel of Trustees hired and supervised by the United States Bankruptcy Court Bankruptcy Case Administrator. The State of Alabama and North Carolina are currently the only states who utilize a Bankruptcy Administrator. All other states operate their Bankruptcy Trustee program through the United States Department of Justice, Office of the United States Trustee. In Alabama, the Bankruptcy Courts supervise the Bankruptcy Administrator rather than the United States Department of Justice Office of the U.S. Trustee ( “the Trustee program”). The law and role of a panel trustee in a Chapter 7 case are basically the same in every state, regardless of whether the Bankruptcy Administrator or the United States Department of Justice Office of the U.S. Trustee is overseeing the panel trustee. The panel trustee is a liquidator.
You may ask yourself, “why would I want to liquidate everything I own?” That is a commonly asked question when a person thinks about contacting a bankruptcy attorney. The best answer is that you would NOT be submitting to a Trustee who sells all of your property. Alabama law provides the legal protections mentioned earlier called “exemptions.” It cannot be stressed enough the importance of consulting with a lawyer who fully understands how these exemptions apply to your particular circumstances.
At Ryan Legal Services, Inc, we have been representing clients in bankruptcy matters since 1998. We represent individual clients in Chapter 7 and Chapter 13 Bankruptcy matters in cities such as Mobile, Daphne, Foley, Robertsdale, Loxley, and all other communities within Mobile, Baldwin and Washington Counties.
Kevin Ryan is an experienced bankruptcy lawyer who will be there for you. Call us to set up a free telephone or office consultation. Kevin Ryan is admitted to practice before the United States Bankruptcy Court for the Southern District of Alabama. http://www.alsb.uscourts.gov