According to the US Bankruptcy Code, Chapter 7 is a legal process to help a bankrupt to repay all his/her debts to a creditor without losing any movable or immovable asset. This chapter is quite different from Chapters 11 and 13 under which the bankrupt is allowed to repay all debts at a time.
For instance, a business entity goes to a phase of fund scarcity and it becomes impossible for the entity to pay the salary to its employees and repay loans. It is quite apparent that after some time, the entity will become insolvent and prepare to file for bankruptcy in a federal court under Chapter 7. The filing for bankruptcy under Chapter 7 means there is a cessation in its operation until a trustee of the Chapter 7 confirms the clearance. The trustee is a mediator between the court and the bankrupt who takes care of both movable and immovable assets of the bankrupt that would be auctioned later. There is no such rule to let employees go from the entity that filed for Chapter 7 bankruptcy for in most cases it has brought to light that the new employer that took over the entity has preferred to retain its old human resource for its smooth functioning.
When filing for chapter 7 bankruptcy is associated with an individual, the process to get the person out of the current financial situation remains similar to that of the business entity mentioned above. The person unable to repay the debts in a fixed tenure can easily file for Chapter 7 bankruptcy in a federal court with the support of a bankruptcy attorney. The debtor must surrender all his/her movable and immovable assets before the court after filing the case. The surrendered assets are used for auctioning and as a result the money collected from the auctioning of assets would have been used to repay the debts of the creditor.
Under Chapter 7 bankruptcy, the individual has got the privilege to get some sort of deduction real estate mortgages and security interests for car loans. Last but not the least, you need to hire a knowledgeable and capable bankruptcy lawyer to file for chapter 7 bankruptcy and get rid of all your debts in no time.