How do you record credit card debt discharged in Chapter 7 bankruptcy in the chart of accounts? This would not be counted as income because it's a personal bankruptcy.

What you read is correct, it is income.

When debt is discharged, it means you do not owe anything for what you bought.  So what you bought, spent money on, no longer has a cost.  It would be impractical to go back in time and zero out costs, especially since that might also mean refiling income taxes for past years.  So that amount is posted as income and is fully taxable.

Debit the liability, CC, account and credit Other Income
or post a CC credit and use the Other Income account as the source account for the credit

If that is the case how would we go about removing that from our books, how to account for it or how to best remove the debt.

Welcome aboard to the Community, Heirloom.

When recording transactions in QuickBooks, it's not recommended combining business and personal expenses in the system. However, if personal funds will be involved with your business, I suggest following the article I recommend below:

Mixing business and personal funds.

Additionally, it would be best to seek expert advice from an accountant to guide you with how to account or remove the debt. They'll also be able to ensure your books will be correct and making the right adjustments.

In case you need future reference into the QuickBooks contact information, I'm attaching this support link:

Contact the QuickBooks Online Customer Support team.

Please get back to me if you have additional questions or concerns about recording the debt, the Community will be sure to get back to you.