Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is the procedure to give up all of your assets for forgiveness of all of your debts.  Some important assets are excluded and do not need to be given over to the Bankruptcy Court, including your home if the payments are current; your car if the payments are current (up to an equity value of $7500), basic household furniture and goods, clothing, basic jewelry (up to $3,000), basic tools of your trade, and a few others.  Your income for last year cannot exceed about $45,000, or you will be required to file a Chapter 13 bankruptcy.