West Palm Beach Bankruptcy Lawyer

What is Liquidation

Sometimes, individuals or companies might find themselves in a position where they owe more money than they are able to repay in the specified amount of time. Whenever this happens, these parties may choose to file for bankruptcy.

There are several forms of bankruptcy available to those who find themselves in fiscally difficult times. One of the most popular options is called bankruptcy liquidation, otherwise known as Chapter 7 bankruptcy. When one opts to follow this path of repayment, he or she is allowed to sell any unprotected assets in order to make money that can be used to pay off outstanding debts.

How does the liquidation process work?

If the debtor chooses to follow the path of bankruptcy liquidation, then there are certain procedural steps that must be followed prior to legal elimination of the money owed. The bankruptcy court must first appoint what is known as a trustee, who is an individual responsible for taking care of the sale of possessions and redistribution of the new funds.

Once this step has been completed, the trustee begins the bankruptcy process. He or she examines any papers filed by the debtor in order to ensure that things are in proper order and organizes the debtor’s property into exempt and non-exempt items. All non-exempt property is then liquidated and the money obtained from this process is distributed to creditors.

Contact Us

If you are in a financially unstable situation and you believe that bankruptcy liquidation is the right solution for your case, then the West Palm Beach bankruptcy lawyer of Eric N. Klein & Associates, P.A. can help. Please contact their law offices today at 561-353-2800 to schedule an appointment.