The basic definition of chapter 7 bankruptcy is taking unsecured debt, like credit card debt, and having it discharged. It is sometimes known as debt liquidation. Unsecured debt is removed, and you can decide on whether or not you want to keep your assets and pay for them, or to return them to the seller or lender. Filing for Chapter 7 bankruptcy is not something that should be done lightly. Once your case is filed, it typically cannot be undone, and any mistakes or failure to properly protec...