{"id":32377,"date":"2016-03-31T19:23:05","date_gmt":"2016-04-01T00:23:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/chapter-7-bankruptcy-faq-s.html"},"modified":"2016-07-29T14:08:54","modified_gmt":"2016-07-29T19:08:54","slug":"chapter-7-bankruptcy-faq-s","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/finance\/chapter-7-bankruptcy-faq-s.html","title":{"rendered":"Chapter 7 Bankruptcy FAQ’s"},"content":{"rendered":"
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What is Chapter 7 and how does it work?<\/b><\/p>\n

Chapter 7 is that part (or chapter) of the Bankruptcy Code that deals with liquidation<\/a>. The Bankruptcy Code is that part of the federal laws that deal with bankruptcy. A person who files under Chapter 7 is called a debtor. In a Chapter 7 case, the debtor must turn his or her nonexempt property, if any exists, over to a trustee, who then converts the property to cash and pays the debtor’s creditors. In return, the debtor receives a Chapter 7 discharge, and obeys the orders and rules of the court.<\/p>\n

What is a Chapter 7 Discharge?<\/b><\/p>\n

It is a court order releasing a debtor from all of his\/her dischargeable debts and ordering the creditors not to attempt to collect them from the debtor. A debt that is discharged is one that the debtor is released from and does not have to pay. Some debts, however, are not dischargeable under Chapter 7 and some persons are not eligible for a Chapter 7 discharge.<\/p>\n

Which Debts Are NOT Dischargeable Under Chapter 7?<\/b><\/p>\n