Chapter 7 wipes out unsecured debt, including credit card bills, medical bills, personal loans, as well as deficiency balances (money owed on houses and cars that have gone back to creditors). After the requirements are met, a discharge is entered (final paper acknowledging that debt is legally no longer owed).
This process takes about 90 days after the case is filed. The one required court hearing, the §341 Meeting of Creditors, is approximately 30 days after filing. Discharge can be then entered approximately 60 days after the Meeting of Creditors in most cases.