When facing financial hardship, bankruptcy may be a way to help you get out of debt. However, there are different kinds of bankruptcies and and it’s important to know what kind of bankruptcy is right for you. In bankruptcy, a person legally declares they are unable to pay their outstanding debts. Depending upon the bankruptcy filed, a court may decide all or a part of debts to be discharged. This means the debt may no longer be collected. The court may also set up a payment plan for the debt to be repaid over time. Businesses also may declare bankruptcy.