In this article, we explain what you can do if you are unable to pay your debts. A person should only file for bankruptcy when there are no alternatives.
Bankruptcy is a court procedure that wipes out certain debts.
You can wipe out unsecured debts like credit card debts, utility bills, back rent or medical bills. You cannot wipe out debts like criminal fines, bad checks or child and spousal support. Also, you cannot wipe out secured debts such as home mortgages or car payments. Bankruptcy is not for everyone with a lot of debt. You do not own a house or an apartment.