Bankruptcy for consumers is offered in two scenarios. There is a Chapter 7 which allows for the dismissal of unsecured debts in their entirety, and Chapter 13 which is a repayment plan.

Due to the changes in bankruptcy law in 2005 it has become much harder for candidates to qualify for a chapter 7 and most will be put through a chapter 13. Bankruptcy takes 7-10 years to complete (if chapter 13) and can stay on your credit for another 7-10 years after that. While it is a very fast solution and does stop collection calls and collection activity, it is very costly to the consumer. Payments are set by the court to an appointed trustee and paid out in a similar fashion to a CCCS program. Consumers lose control of their finances.

For a full list of the rules of filing bankruptcy it is best to talk directly with a bankruptcy attorney in your area. You can consult the phone book, search online or contact your local courthouse for an attorney referral.