Chapter 7 Bankruptcy provides an option to eliminate debt for those unable to maintain their monthly finances. In the typical Chapter 7 case, you obtain a “fresh start” from your debt while being able to retain your assets. Chapter 7 is a quick bankruptcy option, which typically takes three to four months to complete.
Once filed, the Trustee assigned to the case has the ability to administer the bankruptcy estate in order to pay back your creditors. In most cases, your personal property, such as your house, car, and personal belongings, will be considered exempt assets and will not be sold by the Trustee. After the case is completed, most of your debt will be discharged and you will no longer be personally liable for the debt. Certain debts, such as student loans, most taxes, and domestic support obligations are not dischargeable through the Chapter 7.