Chapter 7 bankruptcy is known as the Fresh Start because of the new beginning it provides to the debtor – a second chance and the opportunity to get on the path to financial freedom.  Chapter 7 is a Federal Court liquidation process available to individuals and businesses designed to liquidate debts and start anew once those debts have been released.  

It is a legal proceeding filed by a person or company who is unable to pay their outstanding debts and a process which begins with filing a petition by the debtor.  The assets of the debtor are reviewed and assessed, and sometimes used to pay off a portion of the debt.

Once the Chapter 11 bankruptcy is completed after bankruptcy proceedings, the 341 meeting of the creditors, and other elements, the debt is released from the debtor and they have a chance to move on with their lives, hopefully without debt.