Consumers typically file Chapter 13 bankruptcy, where repayment is made to creditors or Chapter 7 where the debts are dismissed. Each chapter of bankruptcy spells out:
What bills can be eliminated
How long payments can be stretched out
What possessions you can keep
Additional information
The type depends on your circumstances and if you have assets available to repay all or part of your debts. Bankruptcy laws can be tricky and involved, so determining if, when and which type of bankruptcy you need should be made with careful thought or the input of a bankruptcy lawyer.