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Debt Discharge and Property

A typical Chapter 7 bankruptcy may involve the liquidation, or selling off, of a debtor's assets in order to pay past debts. Only after this process is completed, will a debtor near their goal of having their qualifying debts "discharged", or cleared. However, some property is protected from liquidation. In this section you can learn more about the types of property that are excluded from the liquidation property, and that which must be included as part of a bankruptcy. In addition, learn more about the Chapter 7 discharge process and what kinds of debt are included (and excluded) from this type of ruling. Please select from the links below to get started. For quick basics on Chapter 7, download FindLaw's Guide to Chapter 7 Bankruptcy [pdf].

Learn About Debt Discharge and Property
  • Debt Discharge

    After a successful bankruptcy case, the debtor is granted a debt discharge, extinguishing many of his or her debts. This article offers information on debts that can’t be discharged, grounds for denial of a discharge, and more.

  • Types of Bankruptcy Exemptions

    While in a Chapter 7 bankruptcy most of the debtor’s property is sold off to pay creditors, there are certain exceptions. Learn about the types of property that may be exempt from Chapter 7 liquidation.

  • Exempt vs. Non-exempt Property

    A guide to exempt and non-exempt property in Chapter 7 bankruptcy. Find out about which types of property may be spared from Chapter 7 liquidation and those that may not be.

  • Debts After a Chapter 7 Discharge

    While most debts are discharged in a Chapter 7 bankruptcy, there are certain exceptions. Learn about the types of debts that are not discharged, including alimony, child support, and student loan debts.

  • What Happens After Chapter 7?

    A collection of commonly asked questions about what follows a Chapter 7 filing. Find answers to your questions about the Chapter 7 process, including the effect on your credit, possible tax consequences, and debts that remain.

  • State Homestead Laws

    This section offers a collection of state laws dealing with homestead exemptions. Find your state’s homestead exemption law to determine how much equity in your home is exempt from bankruptcy liquidation.

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