What is Chapter 7 Bankruptcy?

A plain-English guide to Chapter 7 liquidation under 11 U.S.C. Section 701-784

About This Site

Chapter 7 bankruptcy -- sometimes called "liquidation" or "straight bankruptcy" -- is the most common form of bankruptcy filed in the United States. It allows individuals and businesses to discharge most unsecured debts and get a fresh financial start, typically in 3 to 6 months.

This site will provide a comprehensive, jargon-free explanation of how Chapter 7 works: who qualifies (the means test), what property you can keep (exemptions), what debts get discharged, and what to expect at every stage of the process from filing through discharge.

We will cover the entire Chapter 7 timeline, including the 341 meeting of creditors, the role of the Chapter 7 trustee, potential objections to discharge under Section 727(a), and what happens to secured debts like car loans and mortgages.

Part of the Bankruptcy Transparency Network -- a growing collection of free, open-source bankruptcy information sites built on public court data. No advertising, no lead generation, no attorney referral fees. Real information, no strings.

Check Your Bankruptcy Discharge Eligibility

Use the free screener at 1328f.com to check whether federal timing bars affect your ability to receive a bankruptcy discharge.

Explore Chapter 7 Exemptions

Dive deeper into what property you can protect in a Chapter 7 case:

Related Resources

The Means Test -- Section 707(b) income test for Chapter 7 eligibility

Chapter 7 Discharge Bar -- Eight-year bar between Chapter 7 discharges under Section 727(a)(8)

The 341 Meeting -- What to expect at your meeting of creditors

Federal Rules Committee

This research supports Suggestion 26-BK-3 to the Advisory Committee on Bankruptcy Rules

Proposing automated Section 1328(f) discharge bar screening in federal bankruptcy courts