There are two types of bankruptcy available to individuals:

Chapter 7 Bankruptcy

Chapter 7 type of bankruptcy involves liquidation of assets and is designed for debtors suffering financial difficulty that do not have the ability to repay their existing debts. The purpose of this type of bankruptcy is to obtain a complete discharge (i.e. elimination) of their existing debts.

Chapter 13 Bankruptcy

Chapter 13 type of bankruptcy  involves repayment and is designed for consumers with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time.  In a Chapter 13 bankruptcy, the bankruptcy court will approve a repayment plan that will repay their debts in no more than five years.