What Is Chapter 7 Bankruptcy? – Walnut Creek Bankruptcy Lawyer
Chapter 7 is a type of bankruptcy that offers individuals a fresh financial start by discharging many unsecured debts (such as credit card debt, medical debt and more).
Chapter 7 is sometimes referred to as the “liquidation” bankruptcy because, in theory, your bankruptcy trustee can liquidate or sell off to raise cash any of your non-exempt assets (assets that are not protected by California’s exemption statutes).
Most people who qualify for Chapter 7 bankruptcy have few or no non-exempt assets, so liquidation is highly unlikely with proper bankruptcy planning and analysis.