Chapter 7 Bankruptcy

The most common type cases filed in bankruptcy are under Chapter 7 and Chapter 13. In Vermont the vast majority of cases are filed in Chapter 7. Chapter 7 is a process where the debtor voluntarily submits all of his assets to the jurisdiction of the court, and typically keeps all assets as exempt and asks for a fresh start which is granted by the court in an order called a discharge. A discharge is the end result of the bankruptcy process and is a court order that forever enjoins creditors from seeking to collect their debts. The discharge in Chapter 7 also provides that you cannot get another discharge in Chapter 7 for eight (8) years or a Chapter 13 discharge for four (4) years. This does not mean that Chapter 13 relief would not be available to should it be necessary after obtaining a discharge, but it would mean you could not get another discharge.

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