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Chapter 7 Bankruptcy Explained

Chapter 7 bankruptcy in plain English: what it discharges, the means test, the automatic stay, and how long it takes.

Chapter 7 in a sentence

Chapter 7 — often called liquidation — can discharge qualifying unsecured debts like credit cards and medical bills, usually within a few months, if your income is low enough to pass a means test.

The means test

The means test compares your household income to your state's median. Below it, you generally qualify; above it, a second step weighs your allowed expenses and disposable income.

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The automatic stay

Filing triggers an automatic stay that requires most creditors to stop collection activity right away — a major reason people file when facing a garnishment.

What to expect

A straightforward Chapter 7 often resolves in a few months, from filing through the trustee's review and the meeting of creditors to discharge.

Key takeaway

Chapter 7 — often called liquidation — can discharge qualifying unsecured debts like credit cards and medical bills, usually within a few months, if your income is low enough to pass a means test. A free case review with a licensed attorney is the fastest way to know what applies to you.

Frequently asked

Do I qualify for Chapter 7?
Eligibility usually turns on the means test comparing your income to your state's median, plus a disposable-income step. An attorney can confirm.
How long does Chapter 7 take?
A simple case often takes a few months from filing to discharge.
General legal information for educational purposes only — not legal advice, and no attorney-client relationship is created. Laws vary by state and change over time; confirm details with a licensed attorney in your state.

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