Chapter 7

Chapter 7 bankruptcy offers consumers a way to get rid of debt without having to repay most of the debts. The downside, is that a lot of debtor property will be sold off by the bankruptcy trustee and liquidated to repay as much debt as possible. Chapter 7 is usually the best choice for debtors who have little or no regular income, and would otherwise have no way to repay their creditors. One of the requirements for filing chapter 7 bankruptcy protection is that the debtor pass the "means test", which will show that the debtors income is insufficient to repay the debts he or she has incurred.