Bankruptcy Law/liquidation

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Expert: - 5/6/2008


Question
Why do liquidation usually results in losses for the creditors or owners or both? please give me some detailed answer.

Answer
A chapter 7 liquidation eliminates unsecured debts.  Only un-exempt assets are subject to liquidation, and in most cases, debtors who are filing bankruptcy do not have any major assets to liquidate.  Usually, if a debtor has assets, they file chapter 13 bankruptcy to repay enough debt to protect those assets.

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Terry Leeders

Expertise

Handles Chapter 7 and Chapter 13 bankruptcy cases.
10 years of extensive bankruptcy experience. Filed over 3000 cases
Chicago Bankruptcy Lawyer website
"One On One Personal Service You Deserve"

Experience

I have been practicing bankruptcy law for 10 years. I have helped over 3000 consumer bankruptcy clients in that time.

Organizations
Chicago Bar Association Illinois Bar Association

Publications
author of Chicago Bankruptcy Blog
Chicago Chapter 13 Bankruptcy Blog
Illinois Bankruptcy Law Blog
Fresh Start Partners

Education/Credentials
University of Illinois Thomas M. Cooley Law School
Chicago Bankruptcy Lawyer website

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