Chapter 7

There are several different types of bankruptcy, including consumer and business bankruptcy, liquidation and reorganization bankruptcy. Chapter 7 bankruptcy is liquidation bankruptcy both for consumers and for businesses. In liquidation bankruptcy or Chapter 7 bankruptcy, your responsibility of paying off your debts is completely relieved and the debts disappear, though not without leaving a mark on your credit history. Unfortunately, this can be quite harmful to your credit score and report, so having the right information on the subject is important when it comes to making educated decisions about your financial future.