Chapter 7

Chapter 7 is a type of bankruptcy filing that allows individuals to discharge certain debts and obtain a fresh financial start. It is the most common type of bankruptcy filing in the United States. When an individual files for Chapter 7 bankruptcy, they are essentially asking the court to erase their debts. The court will then liquidate the debtor’s non-exempt assets and use the proceeds to pay off creditors. After the debts are paid off, the debtor is discharged from any remaining obligations.

History of Chapter 7

Chapter 7 bankruptcy was first introduced in the United States in 1898 as part of the Bankruptcy Act of 1898. This act was designed to provide relief to individuals who were unable to pay their debts. The act was amended several times over the years, most notably in 1978 with the Bankruptcy Reform Act. This act made it easier for individuals to file for Chapter 7 bankruptcy by eliminating the requirement that they prove they were unable to pay their debts.

Comparison of Chapter 7 and Other Bankruptcy Types

Summary

Chapter 7 bankruptcy is a type of bankruptcy filing that allows individuals to discharge certain debts and obtain a fresh financial start. It is the most common type of bankruptcy filing in the United States. When an individual files for Chapter 7 bankruptcy, they are essentially asking the court to erase their debts. The court will then liquidate the debtor’s non-exempt assets and use the proceeds to pay off creditors. After the debts are paid off, the debtor is discharged from any remaining obligations. For more information about Chapter 7 bankruptcy, you can visit the websites of the United States Bankruptcy Court, the American Bankruptcy Institute, and the National Association of Consumer Bankruptcy Attorneys.

See Also

• Chapter 13 Bankruptcy
• Chapter 11 Bankruptcy
• Debt Discharge
• Debtor in Possession
• Automatic Stay
• Exempt Assets
• Non-Exempt Assets
• Bankruptcy Trustee
• Bankruptcy Court
• Bankruptcy Code

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