A Chapter 7 bankruptcy is commonly referred to as a “liquidation,” and it offers qualifying debtors the opportunity to discharge his or her unsecured debts without having to pay them back over time. Unsecured debts are those that are not secured by collateral – commonly in the form of a house, car, or household goods – and which generally include medical bills, credit card debt, various loans, lawsuit judgments, and some tax debt.

In exchange for a discharge, the bankruptcy court will appoint a Trustee from a panel, and his or her job is to determine if your non-exempt assets can be sold to pay back your creditors. The vast majority, if not all, of your assets will be covered under a state exemption, meaning that the Trustee will not be able to sell them. Our goal at the Sisk Law Firm is to provide you with a discharge of your debt while allowing you to retain your home, car, and any personal belongings.

EXAMPLE SCENARIO

But how is this different from a Chapter 13 Bankruptcy or a Non-Bankruptcy option?