When your credit has reached it’s limit and creditors are on you, individuals can file for personal bankruptcy. This can help them get rid of all of their debts by selling off your assets and starting over. There are two options for filing for bankruptcy, Chapter 7 or Chapter 13. With Chapter 7, you liquidate all your assets to pay off your creditors. With Chapter 13 you set up a plan to pay your creditors from your monthly wages for a period of time. When you file for bankruptcy you get a fresh start, but your credit rating does not. It will be hard for you to get a car or a house or even a cell phone in the years after a bankruptcy filing.