The Chapter 7 Bankruptcy
Discharge of debt. The basic premise behind Chapter 7 is that the debtor is deeply insolvent and wants to gain a discharge of debts. Most Chapter 7 debtors today are primarily concerned with credit card debts. It is not uncommon to see Chapter 7 cases for individuals that have credit card debts exceeding their annual income, sometimes double or even triple what their annual income may happen to be. For such an individual, Chapter 7 holds out the promise of gaining relief from those debts.