Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is the most familiar type of bankruptcy. Under Chapter 7 bankruptcy, a debtor's non-exempt property (e.g. equity on debtor's house, expensive clothing, etc.) is sold and used to satisfy and wipe out the debtor's dischargeable debts.

Chapter 7 proceedings are fairly straightforward. About a moth after you file for bankruptcy, there is a meeting of the creditors. This meeting lasts about five minutes. Three to six months later, you receive notice that your debts are discharged. Wages the debtor earns after the case is begun are beyond the reach of creditors who had claims on the date of filing.

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