If you qualify for a Chapter 7 Bankruptcy, your unsecured debt – credit cards, medical bills, personal loans, and contractual obligations (cell phone bill, gym membership etc…) will be discharged. If you intend to keep secured debt, car, house, boat etc…, you have the option of either continuing to make the payments or surrendering the property and eliminating the debt. Generally, a Chapter 7 Bankruptcy is a 3-4 month process.