Chapter 7 bankruptcy provides for liquidation—the sale of the debtor’s nonexempt property and the distribution of the proceeds to creditors. A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13.

Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors.

In addition, the Bankruptcy Code will allow the debtor to keep certain exempt property—but a trustee will liquidate the debtor's remaining assets—and potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

In West Virginia, as in other states, Chapter 7 bankruptcy is a legal process that allows individuals to discharge their debts by liquidating assets that are not protected by exemption laws. When a debtor files for Chapter 7 bankruptcy, they are not required to submit a repayment plan as they would in a Chapter 13 bankruptcy. Instead, a bankruptcy trustee is appointed to oversee the sale of the debtor's nonexempt property. The proceeds from the sale are then distributed to creditors according to the rules set out in the Bankruptcy Code. It's important to note that some of the debtor's property may be secured by liens or mortgages, meaning those assets are pledged to specific creditors and may not be available for liquidation by the trustee. West Virginia has its own set of exemptions that determine what property a debtor can keep. These exemptions can include equity in a home, personal property, and retirement accounts, among others. Debtors should be aware that filing for Chapter 7 bankruptcy could result in the loss of some of their property if it exceeds the exempted amounts.