Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a form of bankruptcy where assets are sold off in order to pay creditors. Certain property is exempt from sale, which varies by state. Chapter 7 erases most debts but still affects credit history negatively. Chapter 7 is reserved for individuals and companies that cannot afford to pay any of their debts. If an individual has enough money to pay of some debts, they may instead elect to file Chapter 13 or Chapter 11 bankruptcy.1
Fast Facts
- Also known as liquidation bankruptcy or debt discharge bankruptcy2
- Takes about six months to complete process2
- Bankruptcy laws vary from state to state2
- Cannot file Chapter 7 twice within an 8-year time period2
Disclaimer
The content on this page is not a substitute for legal advice. Consult a legal professional before filing for Chapter 7 bankruptcy.
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