What is Chapter 7?

 Chapter  7 bankruptcy is like a financial reset button. If you’re drowning in  debt and can't pay it off, Chapter 7 allows you to wipe out most of your  debts so you can start fresh.

Here’s how it works:

1. Filing for Bankruptcy: You start by filing paperwork with the court, listing all your debts, income, assets (things you own), and expenses.
2. Trustee Involvement:  The court appoints a trustee, a person who oversees your case. The  trustee's job is to review your situation and manage the process.
3. Selling Assets: Sell Some Stuff: In return for getting rid of your debt, you might have to give up some of your belongings. A court official (called a  trustee) will decide which of your things need to be sold to help pay  off some of what you owe. But don’t worry—many  everyday items like your clothes, basic furniture, and sometimes even  your car or house, might be protected with exemptions and you can keep  them. If there is a risk to losing any of your assets, then we will  discuss a Chapter 13  to help with your debt.
4. Discharging Debts:  After the trustee does their job, most of your unsecured debts (like  credit card debt, medical bills, etc.) are wiped out, or "discharged."  This means you no longer have to pay them back.
5. Fresh Start: Once your debts are discharged, you get a clean slate. You won’t owe the debts that were included in the bankruptcy.

In short, Chapter 7 bankruptcy is a  way to clear out most of your debt when you can’t see any other way  out. It is the fastest way to get back on your feet and is normally  completed with discharge order entered in about 6 months.