There is a natural inclination to think about bankruptcy when debts are too much to bear. Every type of bankruptcy can offer different kinds of protections. The bankruptcy process forces debt collectors not to reach you. Chapter 7 bankruptcy can wipe everything clear. This new legal status allows an individual to discharge their debts and give them new beginnings. Credit ratings will also be reinstated. The filing of a bankruptcy can enable a person to improve the credit rating of his. However, not all of the debts are eligible for discharge. It is necessary to pay any tax, student loan and past due child support that are owed in arrears to IRS. If you file a Chapter 13 bankruptcy will allow for debt repayment. If a person is looking to protect their assets or consolidate their debts this bankruptcy option could be suitable. Most of the time, a borrower can remain in their home and primary vehicle. The judge will allow monthly payments to the outstanding debt amount at an amount that they are able to comfortably afford. The trustee of bankruptcy receives the payments and distributes them out to creditors. qob7crtrt8.