Chapter 7 bankruptcy is not available to everyone. In order to qualify  for Chapter 7, your income must fall below a certain level, as  determined by a means test.

The principle advantage of Chapter 7 bankruptcy is that it allows you to  discharge debt, meaning you would have no further obligation to pay  debts covered under the bankruptcy. Chapter 7 bankruptcy may also  temporarily stop foreclosure in Florida. Certain types of debts,  however, cannot be discharged such as taxes, child support, student  loans and some others.

Filing for Chapter 7 bankruptcy allows you to keep your secured debt  such as your home and your car, if you want to. These debts are allowed  to pass through bankruptcy without being affected. However, by keeping  the debts, you are responsible for paying them.

Adversely, if you don’t want to keep secured debt, you can surrender the  property and any debt associated with it is forgiven completely.

Chapter 7 allows most individuals to eliminate all of their unsecured  credit card debt and medical bills and to keep all of their belongings.  Occasionally, they may lose some property but this is usually very  minimal.