September 18th, 2008 by Reed Allmand 
Chapter 7 is a common form of bankruptcy case that most debtors have been filing. A filing under chapter 7 is called liquidation. It is a kind of liquidation proceeding in which the debtor is allowed to keep aside exempt property and a trustee appointed by the court takes over the debtor’s non-exempt assets, sells them and pays off the creditors through the sale proceeds. In Texas, you also have the choice of using the federal exemption statutes instead of your Texas exemptions.
If you are planning to file for bankruptcy under Chapter 7 to delay foreclosure, it can buy you 45 to 75 days. It will temporarily delay foreclosure while the Bankruptcy Court works out the details.
To qualify for relief under Chapter 7 of the Bankruptcy Code, the debtor must be an individual, a partnership, or a corporation.
In a Chapter 7 proceedings a discharge is available to individual debtors only, not to partnerships or corporations. Although the filing of an individual Chapter 7 petition generally results in a discharge of debts, an individual’s right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property. In other words, a creditor will retain its rights to collateral securing a debtor’s obligation.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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