Chapter 7 Bankruptcy
The first thing many people think of when they hear bankruptcy is a chapter 7 "straight bankruptcy". In many respects, this is the most basic type of bankruptcy relief, and it serves as a baseline to reorganization chapters, including chapter 11 and chapter 13. For a business entity, chapter 7 provides for the orderly liquidation of the business's assets. On the other hand, for an individual consumer, chapter 7 is route to a financial fresh start.
People filing for bankruptcy must list all property they own, of any sort whatsoever. Individuals are entitled to certain exemptions--property allowances for essential real and personal property. Many debtors are able to exempt most or all of the property, and none of their assets are sold for the benefit of their creditors. Chapter 7 has certain limitations. For one, Congress made chapter 7 less accessible for a certain subset of the population. Erich Fabricius can help you assess your individual situation and advise you if you would be able to successfully pursue chapter 7 relief.