Chapter 7 is often referred to as a "Fresh Start" or "Liquidation" bankruptcy. This type of bankruptcy is typically filed by individuals whose filing would not raise the presumption of abuse under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. This type of bankruptcy normally discharges unsecured debts such as credit cards, personal loans, medical bills, repossessions, and money judgments, and deficiency on foreclosures.
