What is chapter seven?
Debt is a serious problem in America. Money Zine reports that in 2009 American credit card debt alone was $2.5 trillion. Bankruptcy, including Chapter 7, is often the last resort for people who can’t pay their bills.DefinitionDuring Chapter 7 bankruptcy, a court appointed trustee–who is trained by the U.S. government for this purpose–takes non-essential, or “non-exempt,” property from the debtor and sells it, distributing the money to the debtors creditors. The debt owed by the debtor is then discharged or removed, even if the creditors don’t receive all the money owed. See the Non-Exempt Property Section in this article for more information.Non-Exempt PropertyNon-exempt property is property that is considered excessive and non-essential to basic living. This includes expensive musical instruments–professional musicians are exempt–stamp collections, jewelry, heirlooms, cash, stocks, bonds, investments, extra vehicles and vacation homes. Your home, clothes, one vehicle, pensions, tr
