Chapter 7 Bankruptcy is a liquidation proceeding.

The debtor turns over all non exempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors.

The debtor receives a discharge of all discharageable debts.

To file a Chapter 7 bankruptcy: You must reside or have a domicile, a place of business, or property in the United States or a municipality.

You must NOT have been granted a Chapter 7 discharge within the last 6 years or completed a Chapter 13 plan.

You must NOT have had a bankruptcy filing dismissed for cause within the last 180 days.

It must not be a "substantial abuse" of Chapter 7 to grant the debtor relief.

Generally speaking, if after you pay the monthly expenses for necessities there is not enough money to pay the remaining monthly debts, then granting a discharge would not be an abuse of Chapter 7. It would not be fundamentally unfair to grant the debtor relief under Chapter 7.

The most common reasons for consumer bankruptcy are:
1. Unemployment
2. Large medical expenses
3. Seriously over extended credit
4. Marital problems
5. Large unexpected expenses.