Chapter 7 is a viable option for both individuals and businesses that are in need of a fresh start.  A Chapter 7 petition is filed with the U.S bankruptcy court in the district in which the person or business is located.  A notice is sent to all creditors advising of the date of hearing and deadlines to object to discharge.  The hearing is known as the 341 meeting of creditor and is rarely attended by anyone other than the debtor, debtor’s attorney and Chapter 7 trustee.  Every so often, a creditor or two may appear to ask questions of the debtor. The questions may force the debtor to explain items listed on the petition or items that were not listed on the petition.

Each state provides for exemptions which allow a debtor to keep property free and clear from claims of the creditors.  There are limits however on the amount of property that one can keep.  If the debtor’s property exceeds the state or federal exemption amounts, that property can be sold by the Chapter 7 trustee for the benefit of creditors.  Prior to the property being sold by the trustee, the debtor would have the ability to keep the property by buying out the trustee’s interest. 
A debtor can obtain a discharge under Chapter 7 of the bankruptcy code every 8 years.  Hopefully, one fresh start is all a person would need.  Hopefully, a debtor has resolved whatever caused the financial difficulties in the first place.