Learn how Chapter 7 bankruptcy works, whether you can pass the eligibility "means test," what happens to your home and car in Chapter 7, which debts will be discharged by Chapter 7 bankruptcy, and more. These articles provide information for both individuals and business owners considering Chapter 7 bankruptcy. Oct 01, · As a result, many people who want to file for Chapter 7 bankruptcy can still do so. There were numerous additional changes in the law that make filing for Chapter 7 bankruptcy somewhat more difficult and, if you use an attorney, more expensive. But, by following our step-by-step instructions, many people will be able to handle their own karacto.xyz Edition: 21st. Mar 28, · Chapter 7 bankruptcy is known as a liquidation bankruptcy. Most of your property is sold and used to pay off your debts. Chapter 7 bankruptcy is generally meant for people with limited incomes who do not have the ability to pay back all or some portion of their debts. Chapter 13 bankruptcy is referred to as a reorganization bankruptcy. Your.