What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is the most common form of bankruptcy and is used by individuals and businesses to get out of debt. Once you file for Chapter 7, a trustee will be appointed to take over your assets and determine what property is exempt and non-exempt. Exempt property, such as your home and one car, will remain in your possession. Non-exempt property, such as cash or a second vehicle, will go to creditors to satisfy the debt you owe them. Keep in mind that recent law changes have made it more difficult to qualify for Chapter 7. Contact a bankruptcy attorney to learn more about filing for Chapter 7 bankruptcy.

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