Whenever times are tough, it can be difficult to pay all of your bills. It can be easy to get into an endless cycle of overextending your finances every month - to the point where it seems impossible that you will ever get everything paid off. Filing for Chapter 7 bankruptcy is one way that you can eliminate a lot of your debt and finally not have to worry about debt collectors. Here are three things you need to know about filing for Chapter 7 bankruptcy.

1. Not all of your debts may qualify for discharge.

While Chapter 7 bankruptcy allows for most debts to be discharged, there are some debts that can't be removed. Some of those debts include:

• Child support
• Alimony
• Recent tax debt
• Student loans (unless you prove that repayment would pose an undue financial hardship on you and your family)
• Court fees
• Certain court judgments
• Debts you failed to list on the bankruptcy schedule

There are other types of debt that you won't be able to get rid of in a Chapter 7 bankruptcy. If you have questions about how much of your debt you can discharge, you will need to consult a bankruptcy attorney.

2. There are restrictions to how often you can file for bankruptcy.

If this isn't your first time filing for bankruptcy, you need to know that there are restrictions to how often you file to have your debts discharged. Your ability to file for Chapter 7 bankruptcy again will depend on the type of bankruptcy you filed previously.

For instance, if you previously filed for Chapter 7 bankruptcy, you will have to wait eight years before you can file for it again. However, if you previously filed for a Chapter 13 bankruptcy, you only have to wait six years before you can file for a Chapter 7 bankruptcy to get rid of your debt.

3. You are required to complete credit counseling before you file.

One of the most important parts of filing for bankruptcy is completing the credit counseling requirement. You must fulfill this requirement within the six months prior to filing for Chapter 7 bankruptcy.

The credit counseling you receive must be from a counselor who is approved by the U.S. Trustee's office. Failing to get counseling from one of the approved credit counselors can result in you having to go through the counseling process again. 

The main purpose of the credit counseling requirement is to see if it's possible for you to avoid filing for bankruptcy. In some cases, a repayment plan is worked out. However, for many others, repayment is just not feasible, and bankruptcy can't be avoided.

Even if you think that there is no way to avoid bankruptcy, you can benefit from the credit counseling that you have to get. Not only can it help you get an idea of how much money you have to spend versus how much you have in bills, but it can help you make better financial decisions after bankruptcy. You can see the financial mistakes you made that led you to filing for Chapter 7 bankruptcy, as well as learn ways to avoid them in the future.