Most people are familiar with the word bankruptcy, but many do not know much about Chapter 7 bankruptcy. This article deals with some of the more common issues associated with this particular form of bankruptcy.
First of all, Chapter 7 is the most commonly used filing when it comes to bankruptcy. It is sometimes known as liquidation bankruptcy.
There can be some exceptions but almost always Chapter 7 is used by individuals and not by business corporations, small companies or partnerships in business. When used by businesses, Chapter 7 ordinarily results in the termination of the business entity and so this form of bankruptcy is usually not used by those entities. Another side note to this is that the complete discharge of debt under Chapter 7 is only available to individual debtors.
Chapter 7 is a liquidation (selling) process in which the non-exempt property that is owned by the person filing is liquidated (sold) for distribution to the creditors. The debtor then receives a discharge of all dischargeable debts.
Generally speaking, those who file for Chapter 7 are in very bad financial conditions, usually with large credit card and other secured and unsecured debt. For the most part, these individuals do not own […]

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