Chapter 7

Also known as "Fresh Start" bankruptcy, allows a person to eliminate most or all of his debt while being allowed to keep whatever property he may have.

Allows unsecured debt such as medical bills, personal loans and most credit card charges to be easily eliminated.

In many cases, a person may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan.

Chapter 7 does not eliminate:

• Student loans, except extreme hardship cases
• Debts for most taxes
• Debts for alimony, maintenance or support
• Debts for fines, penalties or criminal restitution
• Debts for personal injuries caused by driving intoxicated

To receive a discharge in Chapter 7 bankruptcy, a person must file a bankruptcy petition with the clerk; appear at a meeting of creditors and be examined under oath with regard to assets and liabilities. A meeting date is usually schedule four to six weeks after the petition is filed.