| Chapter 7 bankruptcy or "straight bankruptcy" is the most popular form of bankruptcy because it allows the debtor to "wipe the slate clean" and start all over. This code is available to individuals, couples, corporations and partnerships. Discharge normally occurs within 4-6 months after filing.
Non-exempt assets will go under the care of a trustee who liquidates them to satisfy creditors in order of their secured interests. Any wages a debtor earns is off limits to creditors who had a vested interest on the date of filing.
This code is generally used by those who lack sufficient income to cover outstanding debts after taking care of basic necessities, and who have no hope of ever repaying their creditors. There are certain obligations that are not dis-chargeable, for example:
Alimony and child support
Back taxes under 3 years old and student loans
Recently made purchases for substantial amounts
Property executed contracts involving titles or liens
Before considering chapter 7 you should take an inventory of the types of debt owed. This will give you a better idea if filing will give you the relief you seek.
Who should consider chapter 7.
* If there is no hope of repaying any of your debts.
* If there are no cosigners involved,
* If court action by creditors is imminent, filing stays all collection proceeding while in court.
Downsides
Ruins your credit. If you have a cosigner, they will still be responsible for the debt you discharge. Pay attorneys, court and filing fees upfront.
Alternatives
If you can't discharge enough of your debts or have to sacrifice too much property you may want to consider chapter 13 or a credit counseling / debt consolidation repayment plan.
[SIZE="5"]Unless your husband had established credit with that creditor...all judgements should be final...[/SIZE] | 
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