If you are facing debt problems, and you are unable to pay off your debt, filing bankruptcy can allow you some relief.
Credit card debt and other unsecured debts can be eliminated. Bankruptcy is very good at wiping out credit card debt. Most credit card debt is unsecured, where there is no lien on your property. Unsecured debt can be eliminated by filing a bankruptcy.
To learn more about Chapter 7 bankruptcy: http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics This chapter of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.
If you file for Chapter 13 rather than Chapter 7, you may have to pay back some portion of your unsecured debts. However, any unsecured debts that remain once your repayment plan is complete will be discharged.
When you file for bankruptcy. The credit card companies, retailers and collection agencies cannot call your home, cannot garnish your wages and cannot take you to court. You will not have to deal with the constant harassment and stress.
Eliminate certain kinds of liens. A lien is a creditor's right to take some or all of your property and will survive bankruptcy unless you invoke certain procedures during your bankruptcy case.