Chapter 7

Chapter 7 bankruptcy discharges unsecured, non-priority debts like credit cards, medical bills, payday loans, etc. Chapter 7 does not discharge priority debt such as taxes or domestic support obligations like child support or alimony. Secured debt like a mortgage or car loan will also be discharged but you can still keep the property if you redeem the property or reaffirm the loan and continue to make the payments. You can, however, discharge your obligation on a mortgage or car loan if you also surrender the property.

Most people do not lose any property in a Chapter 7 bankruptcy. Each state provides exemptions that protect certain amounts of certain types of property. Missouri and Kansas both allow you to protect some, if not all, of your home, primary vehicles, retirement, clothes, furniture, etc. Your attorney can advise you regarding your own situation.

Student loans are rarely dischargeable.