Chapter 7 Bankruptcy is having to basically dissolve and sell EVERYTHING you own to pay back your debts and the rest is forgiven unless your financial situation improves within the next 7-10 years. This is the most difficult type of bankruptcy to get especially since the 2007-2008 year.
Results of Bankruptcy & How To Avoid It
No matter which one you are granted remember that until the bankruptcy is discharged you are kept on a financial leash. Basically meaning your are not going to be allowed to obtain any more credit to obtain more debt and basically flagged from making major purchases with lenders. Whether you are granted the bankruptcy or not it will still be a public record even just filing for it. Not many people know that. So it is possible that you could go through the whole process with the attorney, pay the fees to file, etc etc. Then the judge ends up saying DENIED! Now you still have that stain on your report and none of the benefit. Which again is why it is better to speak to debt consolidation specialist before hand or any other consolidation company to see what you can qualify for and get a professional recommendation if bankruptcy is the best option for you.