People accrue debt for many reasons, be it, medical bills, unemployment, marital problems, or bad luck despite the different reasons people accumulate debt chapter seven bankruptcy offers each situation the same result…a “fresh start.”
Chapter 7 Bankruptcy is the most basic form of bankruptcy in which a debtor has an opportunity to discharge most of his or her consumer debt using certain non-exempt property to pay off creditors. Chapter 7 Bankruptcy is an opportunity for a debtor to achieve a financial “fresh start” as individual debtors receive a discharge in more than 99 percent of their chapter 7 cases.
A Chapter 7 Bankruptcy is a liquidation proceeding. A person going through Chapter 7 turns over all non-exempt property to a bankruptcy trustee who uses that property to pay off the debtor’s creditors and in turn most or all of the debtor’s debt liability is discharged.