In a Chapter 7 bankruptcy a debtor can wipe out their debts to get a “Fresh Start”. Chapter 7 bankruptcy is a liquidation where the trustee collects all of the non-exempt assets. (see Texas Exemptions) The trustee sells what assets they can and the profits of the sale is distributed to the creditors minus the trustees fees. Most consumers that file Chapter 7 have little or no assets that actually get sold. To qualify for a Chapter 7 bankruptcy a debt must make below a certain income and pass the Chapter 7 bankruptcy means test.
Chapter 7 BankruptcyChris Ebert2017-05-19T23:37:47-06:00