Chapter 7 is a more short-term solution to overwhelming debts. Chapter 7 bankruptcies will liquidate your assets (i.e. home, car, etc.) and turn them into cash to pay off creditors. This option allows persons previously buried in debt to become debt-free and make a clean start.

Chapter 7 advantages:

•Eliminates all debts
•No repayment plans
•Provides immediate fresh start
•No debt limits

Chapter 7 disadvantages:

•Will sell many assets