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Chapter 7 is a provision of bankruptcy laws wherein a person is required to liquidate assets to pay off creditors. The liquidation of assets is required in exchange for the cancellation of debt entirely. With this kind of bankruptcy you are not required to pay back debts, you owe from before your filing.
To qualify for a Chapter 7 bankruptcy your income must be below your state’s median income. Chapter 7 bankruptcy filing records remain on your credit report for 10 years and the record of each account included in your filing will remain on your report for 7 years.
