Law Offices of Adele Schneidereit

What Is Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy, often called a "liquidation" bankruptcy is for people who will never be able to pay back their debts and need an entirely fresh start from burdensome debts. A Chapter 7 discharge eliminates most unsecured debts entirely and is often the best option for people without the disposable income to make a Chapter 13 work. "Bankruptcy gives to the honest but unfortunate debtor ... a new opportunity in life and a clear field for future effort." This was said originally by the United States Supreme Court in Local Loan Co. v. Hunt (1934) 292 U.S. 234, 244.

What Debts Are Discharged in Chapter 7

What Debts Are Not Discharged by Chapter 7