A Chapter 7 bankruptcy in Indiana wipes out the majority of your debts, allowing you a "fresh start" financially. Although not all debts are removed by a Chapter 7 bankruptcy, the majority of them are.

A trustee collects all your assets that aren't exempt (see Indiana Bankruptcy Exemptions) and sells them off to pay your debts. Some typical Indiana exemptions include your home up to a certain value, certain types of insurance benefits, and so on. Also note that you may be eligible for certain Federal exemptions.

A Chapter 7 bankruptcy will typically take care of credit card debt and other unsecured bills. In a lot of Chapter 7 cases, a debtor is able to eliminate the najority of his or her debts.

A person filing for Chapter 7 bankruptcy may also file for a "Reaffirmation Agreement." By doing so, a debtor is able to keep certain items like a car or home. If a debtor signs a "Reaffirmation Agreement," he or she can't discharge debt for those items for another six years.