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CHAPTER 7 BANKRUPTCY
Chapter 7 is "straight" bankruptcy" or "liquidation." But don't let the term "liquidation" frighten you. Everyone who files under Chapter 7 can keep their "exempt" property out of liquidation. The allowed exemptions are generous, so very few people have any "liquidation" issues. Just tell me what you have and I'll tell you if it is safe to file a Chapter 7.
Chapter 7 allows you to keep your secured debts (house, car, etc.) just as they are, and allows you to discharge (wipe out) your unsecured debt.
Some debts cannot be discharged in Chapter 7, such as student loans, recent income taxes, and alimony or child support.
But medical bills, credit card debt, old income taxes, judgments repossession deficiencies, back rent from an old apartment, and the like can be totally eliminated. Never make another payment.
If you want out of a bad car loan, or a bad car lease, or any other kind of bad secured loan (boat, 4-wheeler, vacuum cleaner, etc.), you can surrender the asset and not pay another dime.
If you have an unused fitness club membership, or a useless timeshare, or overpriced vacation club membership, you can surrender your interest in those contracts and wipe out the balance.