The Chapter 7 bankruptcy, also known as a liquidation bankruptcy, is a means by which debtors are able to enjoy a fresh start. With the help of a Chapter 7 bankruptcy lawyer, you can eliminate most or all of your unsecured debt, although student loans, child support and taxes are non-exempt.

Compared to other bankruptcies, Chapter 7 bankruptcy is usually simple and straightforward. It costs less than other forms of bankruptcy and is a common solution for those with overwhelming medical bills, unsecured loans and credit card debt. Chapter 7 is the bankruptcy of choice for those without assets.

You are not required to turn over household goods, clothing, pensions, public benefits accumulated in a bank account, or personal injury damages. You may be allowed to keep motor vehicles up to a certain value and a portion of the equity in your home. However, you must surrender assets like cash, stocks, bonds, investments and bank accounts.