A chapter 7 bankruptcy is ideal for people whose debt is mainly unsecured debt.  Most unsecured debts can be discharged through chapter 7, with the exception of some taxes and student loans.  If you are burdened with unsecured debt, such as credit cards, also known as consumer debt, 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.  For many people, relief from unsecured debts provides the necessary breathing room to catch up on payments on secured items.