Bankruptcy is used to wipe out credit card debt. This is the kind of debt that bankruptcy is designed to eliminate. If you file for Chapter 13 rather than Chapter 7, you may have to pay back some portion of your unsecured debts. Any unsecured debts that remain once your repayment plan is complete will be discharged. Bankruptcy can stop creditor harassment during this time.
Bankruptcy may not eliminate some other kinds of debts, including child support, alimony, most tax debts, student loans, and secured debts.
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