A Chapter 7 Bankruptcy is an asset based bankruptcy. Debtors do not make payments back to their creditors. Instead, debts get wiped out or discharged to the extent there are no non-exempt assets to liquidate and disburse to creditors. The vast majority of Chapter 7 Bankruptcies are what we call no-asset bankruptcies. That is, debtor have no non-exempt (unprotected) assets they would lose to a Chapter 7 trustee.

(Video) What Is A Chapter 7 Bankruptcy?
A Chapter 7 Bankruptcy is an asset based bankruptcy. Debtors do not make payments back to their...