What Is Chapter 7 Bankruptcy? Chapter 7 is known as the “liquidation bankruptcy’’ because it discharges most of your unsecured debt. That includes credit card debt, medical bills and personal loans. It’s the quickest, simplest and most common type of bankruptcy. According to the American Bankruptcy Institute (ABI), 63% of the , bankruptcy cases filed in , were Chapter 7. Jun 23, · Chapter 7 bankruptcy is designed to relieve you of unsecured debts, such as medical expenses. There is no rule that requires you to use a lawyer to file a petition. You can do the filing yourself, which is called “pro se,” but we recommend that you do your research first. To file a chapter 7 bankruptcy case in the Central District of California, individual debtors: 1) MUSTcomplete an approved credit counseling coursewithin days BEFORE FILINGthe bankruptcy case. Upon completion of the credit counseling course, a certificate of completion will be issued.