Chapter 7 Bankruptcy Overview

If you're buried in debt and can't see a way out, Chapter 7 bankruptcy could offer the financial reset you need. This page explains how Chapter 7 works, who qualifies, what debts can be discharged, and how an experienced bankruptcy attorney can guide you through the process.

​

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also called liquidation bankruptcy, is a legal process that allows individuals (and some businesses) to eliminate most types of unsecured debt.

It's the most common form of bankruptcy in the United States and is often used by people who:

• Can’t afford to repay credit cards, medical bills, or personal loans

• Are facing wage garnishment or creditor lawsuits

• Need fast relief from overwhelming debt

Unlike Chapter 13, there’s no repayment plan. Most Chapter 7 cases are completed in about 3 to 4 months.

​

What Debts Can Be Discharged in Chapter 7?

Chapter 7 eliminates most unsecured debts, including:

• Credit card balances

• Medical bills

• Payday loans

• Personal loans

• Certain older tax debts

• Utility bills

• Repossession deficiencies

Once your case is complete, you are no longer legally obligated to repay these debts.

​

Debts Not Discharged in Chapter 7

Some debts cannot be wiped out in Chapter 7, including:

• Student loans (in most cases)

• Recent income tax debt

• Child support and alimony

• Court fines or criminal restitution

• Debts from fraud or intentional harm

Your bankruptcy attorney will review your debts and let you know what’s eligible for discharge.

​

Chapter 7 Bankruptcy Process: At a Glance

1. Consultation with a Bankruptcy Attorney

2. Gather financial documents

3. Complete a credit counseling course

4. File your bankruptcy petition

5. Attend a 341 meeting (Meeting of Creditors)

6. Complete a debtor education course

7. Receive your discharge in 60–90 days

👉 Read the Full Chapter 7 Bankruptcy Process »

​

Who Qualifies for Chapter 7 Bankruptcy?

To be eligible, you must meet the following requirements:

✅ Pass the Means Test

Your income must be below the state median or show that you can’t afford to repay your debts.

✅ No Recent Chapter 7 Discharge

You can only file Chapter 7 once every 8 years.

✅ Complete Credit Counseling

A brief, court-approved course must be completed before filing.

Not sure if you qualify?​

​

Will I Lose My Property?

In most cases, you won’t lose anything. Federal and state bankruptcy exemptions protect your:

• Home (up to a certain equity limit)

• Vehicle

• Retirement accounts

• Household items

• Wages and tools of trade

Your bankruptcy attorney will help you understand what you can keep and whether Chapter 7 is the best option for protecting your assets.

​

Benefits of Filing Chapter 7 Bankruptcy

• 🚫 Stop creditor harassment immediately

• 💸 Eliminate most debts permanently

• 🛑 Stop wage garnishments and lawsuits

• 🏠 Keep your home and car (in many cases)

• ⏱️ Quick process — typically 90 days to discharge

• ✅ Fresh financial start

​

How a Chapter 7 Bankruptcy Attorney Can Help

Filing bankruptcy is a legal process with strict rules and deadlines. A knowledgeable attorney will:

• Determine if you qualify

• Maximize your exemptions (so you keep your property)

• Handle all court filings and paperwork

• Represent you at the 341 hearing

• Make sure your rights are protected every step of the way

At Mosakowski Law, we help people in Florida get out of debt and get their lives back.

​

📞 Call us now at 813-296-2968

💬 Or Schedule a Free Bankruptcy Consultation »

Serving Tampa Bay and All of Florida

Trusted Chapter 7 Bankruptcy Lawyers Who Fight for You

Don’t spend another day buried in debt. Find out if Chapter 7 is right for you — and take the first step toward financial freedom.

Related Pages:

• 👉 Do I Qualify for Chapter 7 Bankruptcy? »

• 👉 Chapter 7 Bankruptcy Process: Step-by-Step »

• 👉 What Happens at the 341 Meeting? »