Often referred to as the “liquidation chapter” or “pure bankruptcy,” Chapter 7 Bankruptcy provides extraordinary relief from most debts.  In a Chapter 7, all of your debts will be discharged (or wiped out) except certain tax debts, child support, and student loans – unless the court orders otherwise.

You must qualify for a Chapter 7 Bankruptcy, meaning: your income is under the state median for a household of your size or you pass the “Means Test.”   Chapter 7 is ideal for individuals with large amounts of unsecured debt: for example: a foreclosure or short sale deficiency, medical bills, credit cards, etc.  In Chapter 7 Bankruptcy, you will have the option to keep collateral and continue to pay your secured debts.  Debts created through fraud or malicious acts may be objected to by creditors and declared non-dischargeable by the court.