Bankruptcy is a legal status where a debtor cannot repay debts to creditors; Chapter 7, known as a “straight bankruptcy” is the simplest and quickest form available to individuals. For qualified consumers, Chapter 7 will resolve overwhelming, unsecured types of debt from a number of sources such as credit cards, payday loans, medical bills, and personal loans. What it doesn’t do is clear debt from sources like student loans, back taxes, court judgments, alimony, and child support.
To qualify for Chapter 7, you must pass a means test which looks at your income, assets, and expenses. Timing is important too, as it must be at least 8 years since your last Chapter 7 filing or 6 years from your last Chapter 13 bankruptcy. Also, you cannot have a record of filing for bankruptcy in the previous 180 days, specifically one that was dismissed because you failed to appear in court or comply with court orders.