Is Chapter 7 for you? 03/04/2017 Chapter 7 Bankruptcy Background A Chapter 7 bankruptcy protection provides debtors the opportunity to have a fresh start by getting rid of all their debts. This however doesn’t come without its costs like the loss of property and a dampened customer credit rating. Chapter 7 also referred to as "liquidation" or "straight bankruptcy" is the process whereby the bankruptcy trustee sells off a debtor's assets that are non-exempt and uses the proceeds from such sale to pay creditors in line with the
Chapter 7 Bankruptcy Background A Chapter 7 bankruptcy protection provides debtors the opportunity to have a fresh start by getting rid of all their debts. This however doesn’t come without its costs like the loss of property and a dampened customer credit rating. Chapter 7 also referred to as "liquidation" or "straight bankruptcy" is the process whereby the bankruptcy trustee sells off a debtor's assets that are non-exempt and uses the proceeds from such sale to pay creditors in line with the