When You File Chapter 7 Bankruptcy it’s Called a Straight Bankruptcy
Straight bankruptcy is always Chapter 7. Chapter 7 wipes out most unsecured loans, debts without collateral in exchange for giving up all of your property, except the property you own that is exempt, protected from creditors. If it is exempt, it is protected from creditors. Many people file chapter 7 bankruptcy and are able to keep everything they own. If you have more, you may have to give that to the Court to sell, or liquidate, but there are sometimes ways to keep non-exempt property too. What is exempt in bankruptcy varies from state to state so you have to speak to an attorney in your area to know what property would be protected if you filed for Chapter 7 bankruptcy, and how to best protect yourself.
