You may have heard of different kinds of bankruptcy, like chapter 11 or chapter 7. All of them are basically the same event: you recognize that, in your current situation, you are unable to pay the debts you have accrued, whether those debts are medical expenses, credit balances, a mortgage, or something else. When you come to this realization, rather than trying to run from the debts or ignore them, you go before a judge and admit that you’re in a financially insolvent position.