Waukegan Bankruptcy Attorney On Chapter 7 Bankruptcy Law

Chapter 7 bankruptcy is what is often referred to mistakenly as a total liquidation.  The thrust of the idea is that the debtor discharges most, if not all, of his unsecured liabilities and he can possibly get rid of secured debts, such as, houses or cars if he’s willing to surrender those items.  Chapter 7 does not, as we’ve discussed previously, discharge debts that are non-dischargeable, such as, student loans, child support and certain taxes.  It also does not involve liquidating all of the debtor’s assets.  There are state law exemptions in many of the states and some states you’re allowed to choose the Federal exemptions which allow you to protect so much value in certain items of property.  There’s a despair treatment among the states as to what you’re allowed to protect and how much of that value you’re allowed to protect, but every state has some measure of exemptions which allows the debtor to retain certain property so that he can get a fresh start.