There are two primary types of bankruptcy for individual consumers: Chapter 7 and Chapter 13. Your debts are "discharged" if you file for Chapter 7 relief. They effectively just go away, but you have to qualify, the court might order that some of your assets be sold so the money can go to your creditors, and your credit history and score will take a severe hit. Chapter 13 involves repaying a portion of your debts over three to five years. Any balance that remains is discharged. That, too, will damage your credit score, but you'll be able to retain possession of your property.