For consumers, there are two types of bankruptcy to consider filing. The first one is called a Chapter 7. A Chapter 7 bankruptcy discharges all of your unsecured debts. Unsecured debts include credit cards, medical bills, student loans, charge offs, old bills, old accounts, and pay day loans. If the primary debt that you have is consumer debt and you qualify for bankruptcy, then Chapter 7 is probably the best type of bankruptcy for you to file.
If, however, you are having difficulty with your home, your car, or you are about to get your wages garnished or your checking account garnished, then you may want to consider filing a Chapter 13 bankruptcy. A Chapter 13 bankruptcy stops you from losing those things and allows you to file a plan that reorganizes your debt over a three to five year period.