The purpose of this website is to educate about chapter 7 bankruptcy, exemptions in chapter 7 bankruptcy as well as other resources and tools for personal bankruptcy and debt management. These pages may not pertain to every person in every situation, but we are trying to provide enough resources for one to make educated decisions about chapter 7 bankruptcy. One of our goals is to also provide a few resources for personal debt management as well as tools to keep you out of debt.
A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.