What is Chapter 7? Chapter 7 is the bankruptcy proceeding most familiar to the general public. It involves the listing of all your assets and liabilities in a Petition which is filed with the Bankruptcy Court. The moment the petition is filed, the creditors are not allowed to foreclose on your house, repossess your car, garnishee wages, collect taxes, or take any other action. A Chapter 7 allows a debtor to obtain a “fresh start” and be released from paying most debts.
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