Liquidation is the process of turning assets into cash. Liquidation is performed under Chapter 7 bankruptcy in which the debtor has made the choice to sell assets to pay off creditors.

The process begins when the court appoints a trustee who not only oversees the liquidation, but also distributes the funds to creditors.

Debtors should always reveal all assets in their possession, as hiding any assets from the courts will be seen as fraud and prosecuted as such.

Once all assets are discovered, non-exempt property is sold through various outlets, until it is all converted to cash. Based on the items being liquidated the process can be quick or prolonged.

Many believe that by choosing to liquidate it implies everything will be sold for profit. Both federal and state law prohibits this practice and insures each debtor does not lose everything.

Many unaware of chapter 13 effects

Georgia has become the center of the national housing crisis. “For sale” and “foreclosure” signs litter neighborhood yards like American flags on Independence Day. Families once happily renovating kitchens and retiling bathrooms on weekends are now desperately trying to save their homes.

Where “new and reduced price” often lead to bidding wars on homes, it is now an unfair fight between homeowner and mortgage company, with Goliath often beating David. Sales, prices and buyers are down, but foreclosures continue to rise.

Now that the bubble has burst, many are faced with the prospect of actually losing their homes. With only days from the day known as foreclosure Tuesday, many are unaware that all is not lost.

By contacting a bankruptcy law firm and filing for Chapter 13 you can keep your home and still get out of debt.

Chapter 13 bankruptcies allow those in debt to consolidate their debts into one bulk monthly payment. These payments are made to creditors over a period of three to five years or until the debt is completely paid off.

Bankruptcy law firms warn consumers not to believe the end is near for your home, action can be taken against foreclosures as late as the day before the bank is set to seize a home.

In this case, late is better than never when it comes to keeping your family in your home.

In a state that normally tops lists of most beautiful places to live, best barbecue and most hospitable comes another list topper: most foreclosures in the nation.

Based research conducted by Realtytrac.com Georgia places number five in the most foreclosures in the nation. With the nation’s foreclosure listings at 2,934,626, more than 52,000 of them belong to the residents of Georgia.

The only states to place higher than the peach state were California with the most at more than 300,00; followed closely behind by Florida, Ohio, and Texas, respectively.

Conversely, Georgia did not place in the top ten of the number of Chapter 13 bankruptcy filings; an action which could stop the foreclosure of homes.

Chapter 13 bankruptcy filings are the best way to stop a bank or mortgage company from foreclosing on a home. Through this filing, the debtor is allowed to reorganize finances and pay back creditors. Upon filing, a “stay” is placed on a home, which will stop any foreclosure.

With barely 30 percent of those facing foreclosure filing for Chapter 13, the majority of these people will lose their homes.