What is Ch 7 bankruptcy?
Chapter 7 bankruptcy is designed to be a simple and useful form of bankruptcy. Basically, Chapter 7 allows you to "pick" and "choose" which assets and debts to keep ("reaffirm), like vehicles / car payments or a home with a mortgage, and which debts to eliminate ("discharge") like credit card debt, medical bills and so forth. Some debts, however, are not dischargeable in bankruptcy (like recent tax debts, or child support, and most student loans), and some people are not good candidates for Chapter 7 bankruptcy if they have too much income or have too much equity in the assets they need to keep. Those people can generally find relief, while protecting their assets, under Chapter 13 instead of Chapter 7.