The discharge does not, however, release any property that the debtor retains from any lien that may have been granted prior to filing bankruptcy. Only those liens that may be avoided will be extinguished by the bankruptcy court. All other liens remain intact following bankruptcy. Conclusion Chapter 7 bankruptcy is designed for farmers who have decided to stop farming. Once a Chapter 7 bankruptcy petition has been filed, the debtor cannot continue to operate business.
All property passes to the trustee upon filing of the bankruptcy petition.
The trustee then collects all the debtor's nonexempt property and uses it to pay unsecured creditors. To the extent that this property is insufficient, the debtor generally will be discharged from any further indebtedness. Family bible, library, musical instruments. Unlimited Church pew and burial lot. Life insurance proceeds.