Consumers typically file Chapter 13 bankruptcy, where repayment is made to creditors, or Chapter 7 where the debts are retired, generally without any repayment. The chapter under which one files will determine:
o What bills can be eliminated
o How long payments can be stretched out
o What possessions one can keep
o Many other considerations
The type depends on your circumstances and if you have assets or income available to repay all or part of the your debts. Bankruptcy laws can be tricky and involved, so determining if and when one should file bankruptcy and which type of bankruptcy should be made with counsel of a bankruptcy lawyer.