Chapter 7 Banktuptcy

There are a number of different types of bankruptcy that a person can file if they have debts that are completely out of control.

A Chapter 7 Bankruptcy is basically where your property is sold, or liquidated, to pay off the maximum amount of your debts whilst still leaving you with some property that is considered essential for you to live.

These essentials that are exempt from being liquidated under a Chapter 7 Bankruptcy vary from state to state but clothes, a car and household furnishings are usually exempt from being sold off.

If you don't have any property other than those classed as exempt then you can still file for Chapter 7 Bankruptcy but nothing will be sold off. Your unsecured debts can still be written off.

A Chapter 7 Bankruptcy will last for around 6 months. After this, your Chapter 7 Bankruptcy is classed as 'discharged', however, you may find that you have difficulties obtaining credit until the Chapter 7 Bankruptcy has been discharged for a number of years.