Usually identified as liquidation bankruptcy, it involves the sale of a debtor's non-exempt assets by a trustee. Any proceeds acquired by the bankruptcy trustee are then turned over to creditors.
In Chapter 7 bankruptcy, some of your property may be sold to pay down your debt. And in return, all or most of your unsecured debts (debts for which guarantee has not been assured) will be removed. You get to keep any property that is classified as exempt under the state or federal laws available to you (such as your clothes, car, and household furnishings). Allot of debtors who file for Chapter 7 bankruptcy are pleased to learn that all of their property is exempt.
Not everyone can file for Chapter 7 bankruptcy. For example, if your disposable income is not enough to fund a Chapter 13 repayment plan -- after subtracting certain allowed expenses and monthly payments for certain debts -- you won't be allowed to use Chapter 7 bankruptcy.
Talk to a licensed attorney
This page explains general concepts, not your specific case. If you're dealing with bankruptcy chapter 7 right now, a Florida-licensed attorney can tell you how these rules apply to your facts.