Chapter 7 bankruptcy in the most common form of bankruptcy use by individuals and allows for the wiping out of most unsecured debt. Unlike a Chapter 13 bankruptcy which involves a payment plan established by the bankruptcy court and you and allows for the ordering payoff of your debt. Chapter 7 bankruptcy allows you to keep certain property. The property that you are allows to keep is referred to as exemptions. This allows for what is commonly known as a “fresh start”.