Q: What is Chapter 7 Bankruptcy Protection?
A: Chapter 7 bankruptcy is the most common form of bankruptcy and is most often filed by individuals and couples. Chapter 7 protection is also available to corporations, partnerships, and limited liability companies (LLCs). In a Chapter 7, individuals can wipe out many types of unsecured debt. Unsecured debt is debt that you do not have to put up collateral for, such as a debt incurred from a credit card, or medical bills. In Arizona, Chapter 7 bankruptcy proceedings, a court-appointed trustee liquidates your non-exempt assets and divides funds equally between creditors.Before you can file for Chapter 7 bankruptcy, you must go through credit counseling with an agency approved by the Untied States Trustee, and complete a debtor education course.