CHAPTER SEVEN (7)
Chapter 7 is called a Liquidation. Under the theory of a Chapter 7 the court will appoint a Trustee, seize any non-exempt assets (see exemptions) of the Debtor, converts them to cash by selling them and uses the money to pay the unsecured creditors. The filing of a Chapter 7 Bankruptcy Petition stops most lawsuits, stops creditor’s collection activities and, upon discharge, permanently enjoins creditor’s from ever collecting the debts thereby providing the Debtor with a fresh start.