How does Chapter 7 bankruptcy work?

In a Chapter 7 bankruptcy, the case trustee will gather all the debtor’s non-exempt property, sell it, and use the proceeds of the sale to pay as much of the debtor’s debts as possible. After this process, the debtor will be discharged from liability for any remaining unsecured debts (subject to some significant exceptions, such as student loan and tax debt).Note that the bankruptcy trustee is only allowed to liquidate non-exempt property in a Chapter 7 bankruptcy. Some property is exempt from the liquidation process, but what property qualifies for an exemption depends on which state’s laws apply in a given bankruptcy case. Even though the Bankruptcy Code is a federal law that applies nationwide, it gives states authority to decide what property will be exempt when their residents file for bankruptcy. Some states (called “opt-out” states) provide a list of exempt assets in their own laws and require bankruptcy debtors to use those state-law exemptions. Other states provide a list of exempt assets in their own laws, but permit the debtor to choose whether to use that list or the list that Congress included in the Bankruptcy Code.

Cost to file chapter 7 in Alaska

The chapter 7 filing fees in Alaska are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Where are the bankruptcy courts in Alaska?

Whether you choose to use Alaska bankruptcy exemptions or federal, all bankruptcy cases in Alaska are filed in the U.S. Bankruptcy Court for the District of Alaska. It has offices in Anchorage, Fairbanks, and Juneau.

Anchorage

Street Address: 605 W. Fourth Ave., Suite 138, Anchorage, AK 99501

Telephone: (907) 271-2655

Toll-Free: (800) 859-8059

Fairbanks

Street Address: 101 12th Ave., Room 332, Fairbanks, AK 99701

Telephone: (907) 456-0349

Toll-Free: (866) 243-3813

Juneau

Street Address: 709 W. Ninth Ave., Room 979, Juneau, AK 99802

Telephone: (907) 271-2655

Toll-Free: (800) 859-8059

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