Chapter 7 bankruptcy can wipe out your debts without payment. However, a trustee will liquidate your assets by selling off some of your belongings and give the money to your various creditors. These belongings often include a second home, a second car, stocks and bonds, recreational vehicles, any cash you have on hand, and more. You are allowed to file for Chapter 7 bankruptcy once every eight years. This is a good option if you do not mind giving up some of your possessions. Permanently discharging your debt through Chapter 7 will give you a financial start.
A trustee will never take all of your belongings when you file for Chapter 7 bankruptcy-there are certain exemptions. These exemptions include your home, your clothing, public benefits (such as social security or unemployment), insurance, and more. Though bankruptcy can be a very difficult time, you'll still be able to keep your most important pieces of property.