How Chapter 7 Bankruptcy Works
When you file for Chapter 7 bankruptcy, you will be assigned a bankruptcy trustee. This is an entity or individual who is appointed by the court to represent the interests of the bankruptcy estate as well as the people you owe money to (your creditors). He will let you know which types of property that you own are exempt from the bankruptcy. He will then work with you to collect from you and organize all of your non-exempt property.
It is also helpful to have the services of a bankruptcy attorney. An attorney will provide you with any chapter 7 bankruptcy information that you need.
The trustee will itemize all of your property and other assets that are not exempt from the bankruptcy. He will then arrange the sale of those assets and handle the disbursement of the funds received to the creditors.
