All non-exempt property is sold and the proceeds are divided among creditors in amounts decided by the bankruptcy trustee. Most of the debts that are not repaid will be discharged (except for tax debt, child support and alimony debt, and school loans).
For individuals that do not have much property to lose, Chapter 7 bankruptcy is a good solution. This type of bankruptcy filing is straightforward and relatively simple. There are some exemptions for property, but most of your assets will be lost. Even without the exemptions, a chapter 7 bankruptcy is still a viable solution to serious debt problems.
Discuss your decision to file for bankruptcy with a qualified bankruptcy attorney in AZ, such as The Frutkin Law Firm. 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.
