Chapter 7 Bankruptcy

- Also known as liquidation bankruptcy, straight bankruptcy, or debt discharge bankruptcyFindlaw.com: Overview
- Takes about six months to complete the Chapter 7 processFindlaw.com: Overview
- Bankruptcy laws vary from state to stateFindlaw.com: Overview
- Cannot file Chapter 7 twice within an 8-year time periodFindlaw.com: Overview
- Some assets can be protected, depending on state law

Chapter 7 bankruptcy is a form of individual bankruptcy in which most of debtor's assets are sold off in order to pay creditors, with the debt that can't be paid off being forgiven. Certain property is exempt from sale; the exemptions vary 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.Nolo.com: Chapter 7 Bankruptcy
Disclaimer

The content on this page is not a substitute for legal advice. Consult a legal professional before filing for Chapter 7 bankruptcy.
Means Test

In order to be eligible to use Chapter 7 bankruptcy you need to pass a means test. One way to satisfy the means test is to establish that your family income is less than the median income for families of a similar size in your state as determined by the Census Bureau.