Chapter 7 is the type of bankruptcy that is designed for folks who legitimately cannot afford to pay their debts.
If you need every dollar that comes into your household to pay your household’s necessary living expenses then you are eligible to discharge most types of debt and get a fresh start.
While Chapter 7 is the type of bankruptcy that can, in theory, lead to you losing your assets, it is actually very rare.
One of the primary goals of Chapter 7 bankruptcy is to allow an honest person a second chance financially. The law understands that that second chance requires that a person have the ability to keep their home, vehicle and the other necessities of life.