Chapter 7 bankruptcy allows an individual or married couple the opportunity for a fresh start.
Bankruptcy allows a person to get rid of credit card debt, medical bills, some tax debt, deficiency judgements, and a whole host of other debt.
It also helps to repair credit if you follow the proper steps post-bankruptcy to improve your credit. This means that you get a chance to improve your credit and live debt free after your receive your chapter 7 discharge.
The thought of a chapter 7 bankruptcy is often the furthest thing from peoples mind, my clients have all wanted to pay back the debt to the creditors, but often times the creditors did not want to work with them, to allow them to make payments they could afford.
The credit card companies have made a decision that they will only allow certain minimum payments or settlement of the debt, this leaves people with few choices.
Bankruptcy is a right guaranteed by the constitution of the United States of America.
The reason bankruptcy is allowed in the constitution is because the founding fathers determined that it was better to allow somebody a fresh start, then allowing debtors prisons, that were common in Europe at the time.
It makes more sense to allow somebody to pay back what they can afford, then sending them to prison, where they cannot pay back anything.