What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is the most common type of bankruptcy filed by individuals in Phoenix, Arizona.  Known as the liquidation bankruptcy, chapter 7 bankruptcy allows an individual to make a fresh financial start.  All non-exempt property will be sold and the proceeds will be divided among creditors.  The debts that are not repaid will be discharged (though some types may remain).

Chapter 7 bankruptcy is the best solution for individuals that do not have much property to lose.  This type of bankruptcy filing can provide a quick solution and a fresh start.

In most cases you will lose all of your assets, but there are some provisions for exempting a car loan or mortgage in some cases.  Even without the exemptions, a chapter 7 bankruptcy is still a viable solution to serious debt problems.

The decision to file for bankruptcy, especially a chapter 7 bankruptcy, should be discussed with a qualified Arizona bankruptcy attorney.  There are a number of bankruptcy provisions in the law, and experienced bankruptcy attorneys will be able to help you determine which is the right classification, and how exactly the bankruptcy filing will affect your financial situation and your property.