CHAPTER 7 Bankruptcy Protections and Benefits When filing for bankruptcy, you should choose the kind of bankruptcy that best suits your needs. It is important you understand that the names by which a bankruptcy case is called such as Chapter 7, Chapter 11, Chapter 12, and Chapter 13 refer to the chapter in which the type or method of bankruptcy is found within the United States Bankruptcy Code. A Chapter 7 bankruptcy is often referred to as “total" or "complete" liquidation, "straight bankruptcy," or a "fresh start bankruptcy.”  In a Chapter 7 bankruptcy you retain all of your exempt property as well as your secured property so long as you are current on the payments on the secured property and then all of your unsecured and dischargeable debts are wiped out (discharged). Once your case is filed an automatic stay goes in place.  This automatic stay stops your creditors from pursuing any collection activities against you or taking any action against your property such as a foreclosures, garnishment of wages, levies on your bank accounts, or repossession.  While your bankruptcy case is open and pending discharge you will remain in possession of your property and belongings even though technically a bankruptcy estate is created and a Trustee is assigned to manage the estate. Exempt property is certain property from the estate that is protected by law based on California and federal codes and statutes.  A California individual is allowed to use two different schedules of exemptions and may apply either to their property that best suits their need. All property that is not claimed as exempt or secured may be sold by the trustee to pay your creditors. The debtor will then be discharged (released) from personal liability on all dischargeable debts.  Debts, such as to student loans, some taxes, domestic support obligations (child support and spousal support), fines to the government, liability for personal injury to another as a result of intoxication, and intentional torts are not dischargeable in a Chapter 7 bankruptcy. The attorney’s fees for this type of bankruptcy are generally $995.00 and the court filing fee is $299.00.   We are a debt relief agency. We help people file for relief under the Bankruptcy Code.