Chapter 7 of the bankruptcy code is a specific section of the United States bankruptcy law that aims to provide individuals and businesses with a fresh start financially. It is considered one of the most common forms of bankruptcy and is applicable to both personal bankruptcy, also known as consumer bankruptcy, and business bankruptcy. Chapter 7 bankruptcy allows debtors to discharge most of their unsecured debts, such as credit card bills, medical expenses, personal loans, and some taxes. This type of bankruptcy offers individuals and businesses the opportunity to eliminate overwhelming debts and restart their financial lives. However, it's important to note that not all debts can be discharged through Chapter 7 bankruptcy, including student loans, child support payments, alimony, and certain tax debts. The process of filing for Chapter 7 bankruptcy typically involves several steps. First, the debtor must complete credit counseling with an approved agency within 180 days before filing the bankruptcy petition. Then, they need to gather and provide detailed financial information, including assets, debts, income, expenses, and a schedule of contracts and leases. Upon filing the bankruptcy petition, an automatic stay is imposed, which stops creditors from attempting any collection actions, including harassment calls, wage garnishments, and lawsuits. An impartial trustee is appointed to administer the case and liquidate the debtor's non-exempt assets, which could include properties, vehicles, and valuable possessions. The proceeds from the liquidation are then distributed among the creditors to the extent possible. In some cases, individuals with primarily consumer debts and whose income falls below the median income of their state may qualify for a Chapter 7 bankruptcy without having to pass the means test. The means test is a calculation that assesses whether the debtor's income, after deducting certain expenses, is low enough to qualify for Chapter 7. If the individual or business owner's income exceeds the state median, they may be required to file for Chapter 13 bankruptcy instead. Chapter 13 bankruptcy is another type of bankruptcy under the bankruptcy code. Unlike Chapter 7, Chapter 13 is a reorganization bankruptcy primarily designed for individuals with a regular income. It allows debtors to create a repayment plan to pay back their debts over a period of three to five years while keeping their assets. In summary, Chapter 7 of the bankruptcy code offers individuals and businesses the chance to discharge their debts and regain financial stability. However, it is essential to consult with an experienced bankruptcy attorney to determine eligibility and understand the implications of filing for Chapter 7 bankruptcy.