Chapter 7 bankruptcy is referred to as straight bankruptcy, liquidation bankruptcy or fresh start bankruptcy.  The filing of a Chapter 7 bankruptcy is an effective way to eliminate most unsecured debts.  Typical forms of unsecured debts include credit cards, medical bills, personal loans and utility charges.  These debts are considered unsecured because there is no property attached to the debt obligation. 

Chapter 7 does not eliminate secured debt unless the person is willing to surrender the item securing the debt.  Examples of secured debts include houses, cars, jewelry, furniture and title loans. 
Other debts are never eliminated under Chapter 7.  These include recent taxes, student loans (unless there is a substantial hardship), child support, alimony, maintenance, parking tickets and debts incurred through fraud.

There are also strict eligibility requirements under the current bankruptcy code.  A person’s gross income must fall below the median for their area or be subject to a means test.  Please consult with an experienced bankruptcy attorney to learn whether or not you qualify for Chapter 7 and the relief that it provides.