Chapter 7 bankruptcy is a type of bankruptcy that involves a process for debtors to eliminate most of their debts. Through the process, debtors have the opportunity to start over with a clean slate in terms of their debt and credit. It is essentially a process that allows people to start over financially once it has been completed.
However, it is not always the ideal option and depends on people’s individual circumstances. This is due to the fact that in order to remove debts, many of the debtor’s assets must be sold, if possible. Assets are used to pay for as much of the debt as possible. In the end, the debtor is freed from debts even if they have not been paid in full through the sale of their assets.