In the United States, Chapter 7 is the most common type of bankruptcy petition filed. The primary purpose of Chapter 7 bankruptcy is to give individual debtors a fresh start by liquidating nonexempt assets and then discharging their remaining debts. However, exempt property varies by federal code and state, so it’s important for a debtor to first meet with an Aurora bankruptcy lawyer.
In this video, a CPA describes what kind of property is exempt in the Chapter 7 bankruptcy process. As she explains, most unsecured debt is dischargeable. However, a debtor is unable to discharge student loan debts, alimony payments, and child support obligations.