Chapter 7 bankruptcy is a legal process that allows individuals or businesses to eliminate most of their unsecured debts, such as credit card bills and medical expenses. It involves liquidating non-exempt assets to pay creditors, but many people can keep essential items like their home and car. To qualify for Chapter 7 bankruptcy, individuals must pass a means test, which assesses their income and expenses. If approved, the process typically takes a few months, providing a fresh financial start for those overwhelmed by debt.