Chapter 7 Bankruptcy

The most common type of personal bankruptcy falls under Chapter 7 of the bankruptcy law. With this type of bankruptcy, certain assets of the debtor must be liquidated and the proceeds of these assets are distributed to creditors by the trustee in charge of the bankruptcy.

Chapter 7 bankruptcies generally take several months to complete. At the end of the process all of the debtor's debts are discharged with the exception of certain obligations that cannot be waived such as child support payments.