Chapter 7 (Fresh
bankruptcy case under a chapter 7, you file a
petition asking the court to discharge your debts.
The basic idea in a chapter 7 bankruptcy is to wipe
out (discharge) your debts in exchange for your
giving up property, except for “exempt” property
which the law allows you to keep. In most cases, all
of your property will be exempt, such as your house,
your cars, your household goods, and your retirement
plan. Any property which is not exempt is subject to
being sold, with the money distributed to creditors.
On occasions, a Debtor will have exempt funds from
which a non-exempt asset to be sold by the Trustee,
can be bought back by the Debtor.
you want to keep property like a home or a car and
are behind on the payments on a mortgage or car
loan, and you cannot get current right away, a
chapter 7 case probably will not be the right choice
for you. That is because chapter 7 bankruptcy does
not eliminate the right of mortgage holders or car
loan creditors to take your property to cover your
debts. Again, to file under chapter 7 when you are
behind on your house or car or other exempt property
which you want to keep, you must get current on
those items before you file.
the date of filing of the case until date you get
your written discharge in the mail is normally about