Filing Chapter 7 Bankruptcy indicates you have reached the end of your debt tether. Chapter 7 Bankruptcy refers to a court-supervised legal procedure. It is placed under the direction of a trustee. This individual collects all your assets then liquidates them. This conversion to cash is responsible for Chapter 7 Bankruptcy being referred to as "straight bankruptcy." In the process of liquidation, you cannot retain personal non-exempt items such as automobiles or property, Certain assets are exempt. Those you may retain. In some instances, when filing for Chapter 7 Bankruptcy, there are no assets. This type of Chapter 7 Bankruptcy is called a no-asset case. The money obtained from the sale of any assets, however, is given to the creditors. The secure creditors are at the top of the list for receiving payment. Most countries have laws governing Bankruptcy. In the United States, this is the Bankruptcy Abuse Prevention and Consumer Protection Act. It replaces the older Bankruptcy Act.