Bankruptcy

Depending on your situation, bankruptcy may erase all of your debt. However, it may only take away most or some. Factors include if you have filed for bankruptcy before (and how recently) and your income. Some debts cannot usually be eliminated such as federal student loans.

There are ways to get out of debt without filing bankruptcy. These include increasing your income, decreasing unnecessary spending, selling some of your possessions or property, refinancing or borrowing against your assets with equity, negotiating with your creditors, borrowing money from different sources at a lower interest rate and/or better terms, consolidating your debt, or a financial miracle/blessing.

This will depend on your case. Chapter 7s are preferred from the perspective of the debtor. Factors that will place you into either category include whether you have filed for bankruptcy in the past (and how recently), your income, and your dependents. This is why it is important to hire an experienced bankruptcy attorney as your placement into either a Chapter 7 or Chapter 13 filing can potentially save you a lot of money.