A Chapter 7 case is sometimes referred to as a “liquidation case” or as “straight bankruptcy.” The purpose of a Chapter 7 case is to:
1. Provide you with a fresh start by having some or all of your debts discharged (i.e. forgiven)
2. Provide a money distribution to your creditors on their claims
As you will see, in many cases creditors are provided with no distribution of money at all in a Chapter 7 case because of the financial situation of the individual filing for bankruptcy relief.