Bankruptcy

financeguide.biz chapter – 7 US bankruptcy law is usually used by people who are having a restricted or virtually no source of income. This condition generally prevents the individual / business, to be able to pay off to their debtors. There are a few things like an owned automobile, personal belongings or clothings that will not be lost in connection to the chapter – 7 bankrupty case.

However the automobile or home, if it has loan on it will be lost to the bankruptcy case. But it is to be stated that the lien holder will recover the property that has been used as a collateral for the loan on the aforesaid items. However if there are any unsecured loans like credit cards or medical bills will be eliminated in a chapter – 7 bankruptcy case.