Bankruptcy - Chapter 7 Overview

If you are in debt, Chapter 7 bankruptcy, otherwise known as a liquidation bankruptcy, allows you to start over by giving some of your assets to creditors. The Chapter 7 bankruptcy process is inexpensive and relatively short—it takes 6 months or less and costs under $300. A court will decide what assets you will be allowed to keep, and which must be sold to pay creditors.

Filing a Chapter 7 bankruptcy petition will stop most creditors from trying to collect debts you owe.  However, because it involves giving up some of your assets, it may be in your best interest to find another way to resolve your debts before filing Chapter 7.