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Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

November 29th, 2011 // 11:27 am @

 Chapter 7 Bankruptcy can eliminate many kinds of debts, such as credit card debt, medical bills, and unsecured loans. In a Chapter 7 or “liquidation bankruptcy,” some of your property may be sold to pay down your debt. In return, most or all of your unsecured debts (that is, debts for which collateral has not been pledged) will be erased. Some assets may be exempted, like those deemed necessary to support you and your dependents (such as your clothes, car, and household furnishings). This bankruptcy is the most common filing for business failures. It cancels most debts, but you have to let the bankruptcy trustee liquidate nonexempt property for the benefit of creditors. If you don’t have any property or all of your property is exempt, then you will have a “no asset” case.


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