CHAPTER 7 BANKRUPTCY

BANKRUPTCY OVERVIEW

In Chapter 7 bankruptcy, the bankruptcy trustee cancels many (or all) of your debts. At the same time the trustee might also sell (liquidate) some of your property to repay your creditors. Chapter 7 bankruptcy, also called "straight" or "liquidation" bankruptcy, is so named because the law is contained in Chapter 7 of the federal Bankruptcy Code. Here's an outline of Chapter 7 bankruptcy -- who can file, how the process works, and what happens to your property and debts.

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