A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.
Mohammad Faruqui is an attorney in Fort Lauderdale, FL, serving consumer and corporate bankruptcy clients throughout Florida, including the Miami-Dade, Broward and Palm Beach counties. Mr. Faruqui is a member of the National Association of Consumer Bankruptcy Attorneys and a member of the South Florida Bankruptcy Bar Association. Mr. Faruqui has been licensed to practice law in Florida since 2006, and graduated from Nova-Southeastern University Shepard Broad Law Center in 2005.
For bankruptcy matters, Mr. Faruqui can be contacted at Mohammad@Faruquilawfirm.com or at (954) 769-0745.