Chapter 7 bankruptcy may eliminate most kinds of unsecured debt. Some examples of unsecured debts are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.
Technically, the debtor’s assets are to be taken and sold so that the proceeds can be distributed to the debtor’s creditors. However, you typically can keep all of your property. This is because of many important exemptions that protect consumers. For further explanation of these exemptions, please see below. Also, contact us today for a free consultation and we will explain how these exemptions will affect your case.