How Does Chapter 7 Bankruptcy Really Work?

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A Chapter 7 Bankruptcy is often referred to as a "fresh start," but what does that mean for you, your family, and your financial future?

Chapter 7 of the Federal Bankruptcy Code was designed to help individuals facing a financial crisis get rid of as much debt as possible, as quickly as possible in order to get back on their feet with a chance to start fresh. Under a Chapter 7 Bankruptcy, there is no maximum limit on how much debt a person may have. However, not all debts are eligible for discharge (e.g., taxes, student loans, and child support obligations).

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