Video Transcription: Question What is a Chapter 7 Bankruptcy? Answer A Chapter 7 bankruptcy is a form of bankruptcy that a consumer can file. Basically what a chapter 7 is, is that it allows you to discharge all of your unsecured debt. In order to qualify you can not have filed chapter 7 bankruptcy case in which you received a discharge in the prior 8 years. You also have to pass an income test. If you do both of those things we are able to get your chapter 7 filed, and liquidate all of your unsecured debt in approximately 4-6 months.