Chapter 7 bankruptcy will not erase student loans, tax debt, alimony or child support. It is the most common type of bankruptcy, and allows people to keep essential possessions. It typically takes four to six months from filing to discharge.Bankruptcy is an option when you are facing serious financial difficulties. Chapter 7 bankruptcy is a way to legally discharge unsecured debt, such as credit card debt, medical debt and personal loans, by a court order from a bankruptcy court.In a Newsweek report on the ...