This is the most commonly filed bankruptcy case. It is an important option, especially for low-income debtors. As a practical matter, chapter 13 petitions are rarely a good option for most low income debtors. In a chapter 7 liquidation case, all of the debtor's nonexempt assets are distributed to creditors, and the debtor receives a bankruptcy discharge at the end of the proceedings. Debtors will often have the option of keeping the assets and paying to the trustee the value of the non-exempt assets.
Individuals can file.
Husbands and wives can file together. The filing fee can be paid in installments but it cannot be waived. All of the creditors will also get notice of the meeting. The creditors may attend the meeting, examine the documents and ask the debtor any questions they have. The creditors rarely appear in cases involving low income debtors with primarily consumer debt and no assets.