ABA Family Legal Guide

Consumer Bankruptcy

Straight Bankruptcy: Chapter 7

Chapter 7 Defined

What is Chapter 7 Bankruptcy?

This is the type of bankruptcy usually best suited to a person who has a modest income, few assets, and comparatively high debts. Straight bankruptcy under Chapter 7 is available if less drastic remedies will not solve your financial problems. It allows you to discharge most of your debts. As noted in the previous section, Chapter 7 bankruptcy does not result in a discharge of all types of debt. If a debt is excepted from discharge, you are still legally responsible for it.