The purpose of Chapter 7 bankruptcy is to allow debtors to have a "Fresh Start". Under Chapter 7 Bankruptcy, a trustee is assigned by the court and enacted with the powers to liquidate a debtors estate. At first this sounds harsh, but the code also provides for numerous categories of "exempt" property that is not included in the estate. Debtors keep all of their exempt property. Most property in a Chapter 7 liquidated will be exempt, including automobiles, homes, and retirement accounts. However, certain debts cannot be discharged in a bankruptcy, such as: Federal tax debts, student loans, maintenance payments, and child support payments.
We offer free no-pressure bankruptcy consultations. During your consultation we will discuss your debts, assets, and income. After which, we will be able to give you our honest opinion on whether filing for bankruptcy is the right decision.