A Chapter 7 bankruptcy is when an individual can completely eliminate all debts, all except student loans. Some IRS debts may qualify. In this type of bankruptcy, an individual must give up non exempt property, most often this includes automobiles with a lien holder or other property with unpaid loans such as a home with a mortgage loan. The individual may choose which debts he or she will include in a chapter 7 in order to retain certain property.
An individual can include many debts such as:
In order to determine if an individual is eligible to file a Chapter 7 Bankruptcy, a bankruptcy means test is used by the law firm in order to determine financial eligibility. If an individual has previously filed a chapter 7, he or she may not be eligible to file for 7 years after the discharge of their previous chapter 7.