Chapter 7 Bankruptcy Chapter 7 bankruptcy ,also known as straight bankruptcy or liquidation bankruptcy, typically results in most of your debts getting discharged in about three months. Chapter 13 Bankruptcy A person may file a Chapter 13 bankruptcy rather than a Chapter 7 bankruptcy case for a variety of reasons. Several prime examples are: Foreclosure, Student Loans, etc. Uncontested Divorce Are you and your partner ready to move on and end your marriage? Have you settled all property, custody and support issues arising out of the marriage?