Chapter 7 Bankruptcy

• A Chapter 7 bankruptcy is generally the fastest and most straightforward form of bankruptcy. Your bankruptcy can be granted and your debts discharged within four to six motnhs months of the time that you file your case. Once your case is completed, your dischargeable debt is no longer your responsibility, and you can begin to rebuild your finances.
  
  

Liquidation of Assets

• The downside to a Chapter 7 bankruptcy is that if you have any savings, investments or own anything of value, they must be sold or liquidated to provide some compensation to your creditors. When you file for bankruptcy, your bankruptcy trustee will ask for a list of your assets and will handle their sale and liquidation, and then make the appropriate payments to your creditors.
  
  

Bankruptcy Exemptions

• To prevent people who are going through bankruptcy from losing everything they own, federal and state laws exempt some property and assets from liquidation. These laws can be quite specific, though some states also grant you a "wildcard" exemption that allows you to keep any property or assets that you choose up to a certain value. You can use these exemptions to keep your computers, although you may have to give up other items or assets.
  
  

Tools of the Trade

• Some states provide a special exemption for "tools of the trade." A tool of the trade would be any item that you need to run a your business or do your job. Depending on their value, you may be able to keep your computers under this exemption, providing that you use them to earn money.
  
  

Alternatives

• If you need to file for bankruptcy and are concerned that you won't be able to keep your computers, you should ask your lawyer about Chapter 13 bankruptcy. In Chapter 13, you'll enter into a repayment plan that lasts several years, with the balance of your debt discharged after you complete your plan. While this is a slower way of dealing with your debt, it has several advantages, including the fact that you won't have to turn over any of your property, including your computers. In addition, Chapter 13 bankruptcies often come off your credit reports three years earlier than Chapter 7 bankruptcies.