Bankruptcy is a powerful remedy for individuals who are looking to rid themselves of their debts. The bankruptcy process is able to help rid you of unsecured debts and unsecured credit card debt. Unsecured debts are simply those where there is no form of collateral to secure the debt in the case of default. Where secured debts are involved, a secured creditor can act upon their security interest by foreclosing on the debt by taking possession of the collateral.