What is Chapter 7 bankruptcy and who qualifies?

A Chapter 7 bankruptcy is what we like to call a liquidation bankruptcy. Essentially what that is is a type of bankruptcy that allows you to, in exchange for disclosing everything that you own and everyone that you owe money to, to discharge all of your obligations that are allowed under the bankruptcy code.

In terms of who’s eligible to file a bankruptcy, Chapter 7 bankruptcy, both individuals and companies can both file Chapter 7 bankruptcies.