What happens at the end of successful Individual Chapter 7 Bankruptcy?

When an individual files for Chapter 7 Bankruptcy, the debtor is essentially asking the bankruptcy trustee to manage the liquidation of any collectible assets and then requesting that the court discharge the remaining dischargeable debt.

The trustee will take any assets of value, which are not exempt, and distribute those assets to the creditors in order of priority. For more information about what types of assets are exempt visit our Exemptions page.

Any unsecured creditors that are left holding claims when the assets run out will be discharged unless they fall into a very limited list of non-dischargeable debts (such as student loans or most income tax debt).

If no objections are filed, then the debtor is issued a discharge, which is an order that prohibits discharged creditors from trying to collect their debts from the debtor. This is the typical end of a Chapter 7 Bankruptcy case, although there are certain objections or audits that can be filed later which could re-open or undo the discharge.