Chapter 7—Discharge of Debt
In Chapter 7, the goal is to discharge most or all debts without paying creditors anything. However, a Chapter 7 does not force a mortgage holder or auto lender to give you additional time to catch up on payments. In addition, some kinds of debts, like child support, alimony, student loans, and some taxes, are not discharged in Chapter 7.
In every Chapter 7, a Trustee is appointed. A trustee is a private individual, often an attorney, who is appointed to see if you have any property that can be turned into money to pay your creditors. State law puts many kinds of property off limits to the trustee, but if you own valuable property, such as a large amount of equity in your home, a valuable car, or collections of things such as valuable coins or antiques, the trustee might seek to sell them.
If you are considering filing bankruptcy, you should consult with an experienced bankruptcy attorney to determine whether Chapter 7 is right for you.
