Chapter 7 bankruptcy, also known as straight bankruptcy, is usually what most people think of when they hear the word bankruptcy.

1. Chapter 7 is the simplest form of bankruptcy.
2. Filing bankruptcy under Chapter 7 wipes out most of your unsecured debts.
3. The Bankruptcy Code lets you keep property up to a certain dollar value through a series of state or federal exemptions.
4. Any non-exempt property must be surrendered to a court appointed trustee who will sell such property for the benefit of your creditors. In reality, the vast majority of those who file never have to surrender any property since most property is covered by exemptions.
5. After filing your bankruptcy petition, you must attend a hearing before a judge or court appointed trustee. If there are no objections, all of your unsecured debts are eliminated and you can begin to make a “Fresh Start”
6. In order to qualify for Chapter 7, you must complete a process called the Means Test. Although the test is a complicated process involving income and expense analysis, most people pass and are able to file bankruptcy. The hardest part of the test for most people is gathering up all of the information needed to perform the analysis. You will also need to complete a Credit Counselling course online or by telephone at and additional cost.