Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

The Office of the United States Trustee oversees all bankruptcy cases and defines Chapters 7 as follows:
Chapter 7 bankruptcy is a liquidation proceeding available to consumers and businesses. Those assets of a debtor that are not exempt from creditors are collected and liquidated (reduced to money), and the proceeds are distributed to creditors. A consumer debtor receives a complete discharge from debt under Chapter 7, except for certain debts that are prohibited from discharge by the Bankruptcy Code.
Most people do not lose any property in a Chapter 7 bankruptcy. Each state provides exemptions that protect certain amounts of certain types of property. Missouri and Kansas both allow you to protect some, if not all, of your home, primary vehicles, retirement, clothes, furniture, etc. Your attorney can advise you regarding your own situation.

Chapter 7 bankruptcy discharges unsecured, non-priority debts. Credit cards, medical bills, payday loans, etc. Chapter 7 does not discharge priority debt such as taxes or domestic support obligations like child support or alimony. Secured debt must be reaffirmed if you intend to keep the property. You can, however, discharge your obligation on a mortgage or car loan if you also surrender the property.
Student loans are rarely dischargeable

Chapter 7 Requirements

To be eligible for a Chapter 7 bankruptcy, you must:

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