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A debtor filing for chapter 7 bankruptcy finds that lots more debts are discharged under the chapter 7 bankruptcy laws than filing any other types of bankruptcy. Most of the debts can be discharged under the chapter 7 bankruptcy laws but there are exceptions. Creditors are also restricted in their collection actions against debtors who file chapter 7 bankruptcy.

When filing chapter 7 bankruptcy, the debtor has to comply with all the chapter 7 bankruptcy laws for the filing to be accepted. Chapter 7 bankruptcy laws are complicated so many people seek the help of a bankruptcy lawyer who can help interpret the laws and ensure compliance of the filing process. If a debtor does not comply with chapter 7 bankruptcy laws, the case can be converted or dismissed.

When the bankruptcy court deems it fit to issue a debtor with a discharge order, the creditors can file complaints to object to the discharge. If creditors do not object, the bankruptcy court will proceed with the discharge order. Often, debtors only have to wait a few months to receive discharge orders if creditors do not object.

Most people who file chapter 7 bankruptcy receive a discharge order however there are many reasons the court may reject the case. For example, if a debtor takes advantage of the chapter 7 bankruptcy laws such as committed a crime, fraudulently transferred assets to deceive the bankruptcy court, sabotaged properties that would be liquidated then the court would reject the case.

Even after the discharge order has been granted, secured creditors can still attempt to collect the assets used as collaterals for the debts. If a debtor does not want to give the asset back to the secured creditor, he or she can reaffirm the debt, pay the secured creditor and keep the asset even after the bankruptcy ruling.

Once a discharge of debts has been granted to the chapter 7 filer, creditors of discharged debts may not continue to harass the debtor in order to collect the debts. Creditors that sell off the debts to collection agencies cannot themselves contact the debtors to collect the debt. The collection agency also cannot keep trying to collect from the debtor.

Debts that are not discharged under the chapter 7 bankruptcy laws, however, can still be collected even after the bankruptcy case is closed. Examples of such debts are alimony, child support, taxes, guaranteed loans and debts that were intentionally created to take advantage of the chapter 7 bankruptcy laws.