Szabo Law Group, P.A. Florida. Bankruptcy, immigration and real estate attorneys

Generally, what is a Chapter 7 Bankruptcy?

Generally, what is a Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy, also phrased as a liquidation, typically wipes out most of a Debtor’s general unsecured debts, including credit cards and medical bills, without the need to repay any of the debts. However, if a Debtor has any unexempt assets, those assets may be sold by the trustee to pay their Creditors. If a Debtor has limited assets, such as an older or fully encumbered car, it is possible they will be able to keep the car and still wipe out all the dischargeable debts without losing that asset. The outcome varies depending on each Debtor’s unique situation.