What are the different “Chapters” in bankruptcy for consumers?
The majority of consumers will file for bankruptcy qualify for Chapter 7. It is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are often referred to as “straight bankruptcy” or “liquidation” cases. Under Chapter 7, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property as exempt pursuant to federal bankruptcy law or their state law. An individual debtor gets a discharge, which means the debtor does not have to pay certain types of debts. This site allows you to answer a few short questions to see if you will likely qualify for a Chapter 7 bankruptcy. If you do not qualify and need to file a Chapter 13 bankruptcy, we can provide an immediate link to an attorney who your community that can help you prepare it. Chapter 13 is the debt repayment chapter for individuals with regular income whose debts do not exceed $1,347,550 ($336,900 i
