A trustee is appointed who collects all non-exempt property, sells
the assets and distributes proceeds from this sale to appropriate
creditors. Chapter 7 is different from other bankruptcy filings because
the debtor needs not make a payment to the trustee.
Even though in some cases this would mean that you will lose all your
assets, this need not always be the case. It is strongly recommended
that if you are apprehensive and feel you will lose your assets, discuss
the matter with your Bankruptcy
Under Chapter 7 Bankruptcy, the debtor receives a discharge on all
dischargeable debts. There are 19 general classes of debt that are
discharged under Chapter 7 Bankruptcy.
An added advantage with Chapter 7 bankruptcy is that by signing a
reaffirmation agreement a debtor can continue to pay for a car loan or a
mortgage on their home. This agreement is in place because as per the
US Government Bankruptcy Code a debtor could be allowed to retain some
or all of his property.