How It Works
Once it has been determined that you are eligible to file Chapter 7, your attorney will prepare court documents that outline our income, debts and assets. A trustee is appointed by the court to oversee your case and it is their job to be sure that any assets available are distributed to your creditors.
You will not lose everything you own in a bankruptcy, however, as some items are exempt from seizure by the court. Your clothing, furnishings and tools you use as part of your employment are exempt as is a vehicle valued up to a certain amount and some of the equity in your home. Some states offer what is known as a wild card exemption that allows you to protect some of our nonexempt property as well.
Creditors have up to 60 days to object to the discharge. Any creditor who violates the automatic stay could suffer court sanctions, including paying you for the violation.