Filing bankruptcy is not fun! It is a last resort if you are interested in keeping an active and acceptable credit report. Bankruptcy is the condition of bringing all your assets and deficiencies into an insolvent state. It is a state of financial loss, where your debts are canceled and it will remain on you credit report for seven years. A creditor or mortgage company will generally not lend money with an active bankruptcy on your report.

A bankruptcy will pay your secured and unsecured debts; this includes credit cards, car payments, and other payments