Virtually everyone in the Seattle area that declares bankruptcy is represented by a bankruptcy lawyer, who under bankruptcy laws is characterized as a relief agency. But even if you're represented by a Seattle debt relief agency, bankruptcy will be less stressful if you understand some bankruptcy basics. That means knowing something about Chapter 7 bankruptcy, the route taken by most debtors. Here are some key Chapter 7 points, which you can review with your Seattle debt relief agency.

Chapter 7 is called a "liquidation" bankruptcy. The reason, as your relief agency can explain more fully, is that any assets not exempt from the bankruptcy process may be liquidated ? that is, sold to payoff creditors. If a debtor has no non-exempt assets, there is no liquidation. Instead, unsecured debts are simply discharged. (For the difference between secured and unsecured debts, consult your Seattle debt relief agency.)

Non-exempt assets - those you can keep after bankruptcy - include clothing, household goods and furniture, as well as certain retirement plan benefits. Check with your Seattle debt relief agency for a full exemption list. Be sure to ask your Seattle debt relief agency about dollar limitations.

To be eligible for Chapter 7, you must meet a "means" test. It can be complicated, so ask your Seattle debt relief agency to explain it to you.

Every Chapter 7 proceeding has a trustee. The trustee strives to payoff your creditors as much as possible. In contrast, your Seattle debt relief agency strives to have you keep as much of your assets as possible.

Most of your debts will be discharged by the Chapter 7 process, so you'll no longer owe those creditors. However, some debts can't be discharged; you still owe this money. These debts include those automatically surviving bankruptcy unless the court decides otherwise; for example, child and spousal support. Your relief agency can provide information about non-dischargeable debts.