In a Chapter 7 bankruptcy, also known as liquidation bankruptcy or straight bankruptcy, a bankruptcy trustee will liquidate, or sell, your assets and use the proceeds to pay back your creditors. Chapter 7 bankruptcy is a good debt-relief solution for debtors who have more debt than they can afford to pay, given their income and expenses, as it allows debtors to discharge many, if not all, of their unsecured debts, including medical bills, utility bills and credit card debt. Not everyone is eligible for Chapter 7 bankruptcy though, so it is a good idea to consult a bankruptcy attorney to find out whether you qualify.