A Chapter 7, sometimes referred to as “straight bankruptcy,” is ideal for those whose debt is mainly unsecured and who have a minimal amount of assets. Most unsecured debts can be discharged through chapter 7, with some exceptions, such as student loans, criminal fines, and most taxes. If you are burdened with unsecured debt, such as credit cards or medical bills, a chapter 7 bankruptcy will discharge, or cancel, the bulk of those debts. If you have secured debts, such as mortgaged property and financed cars, you can continue to make the scheduled payments or return the property to the securing party and discharge the balance. For many people, relief from unsecured debt provides the necessary breathing room to catch up on payments on secured items.