LIQUIDATION BANKRUPTCY 

The most common bankruptcy route for individuals is Chapter 7. This is the bankruptcy solution where an individual’s assets are liquidated in order to pay off debt. Not all their assets will be liquidated, however. Certain assets are exempt from liquidation and can be kept by individuals, including homes and vehicles. Assets that are non-exempt can be liquidated and sold off to pay creditors.

Chapter 7 bankruptcy is an option that works best for individuals who are drowning in overwhelming debt. This debt can include credit cards, medical bills, high interest rate loans, and more. With not nearly enough money in their bank accounts to pay off this debt, many individuals look for options to find the money they need to pay off massive debt. By filing for Chapter 7 bankruptcy, individuals can have their non-exempt property sold off. The money collected from the sale of these assets will then be paid to creditors to erase debt.