Chapter 7 bankruptcy is usually the best way to wipe out your debts. If you have a lot of debt but little income, that's a situation where Chapter 7 bankruptcy is likely to be helpful. You might not have the money to pay off all your debt, but you should still be able to afford some payment plan for it. When you get rid of your debts through Chapter 7 bankruptcy, it can provide a clean slate that lets you benefit from a second chance. Here are some of the benefits of filing Chapter 7 bankruptcy:

- It stops creditors from trying to collect debts from you.

- It lets you get rid of debts like medical bills, credit card bills and mortgage payments.

- It gives you the ability to start fresh with a clean credit report.

- It can help you keep valuable property like your house or car (if the property is not owned by anyone else).

- It can help you keep important assets if they're protected by law like retirement accounts and insurance policies (more on this below).

There's no such thing as a free lunch, and there's no such thing as a free bankruptcy. What we mean is that filing bankruptcy isn't the magical fix-all that's going to erase all your debt, but it can be a great way to get out of debt fast! And while there are some drawbacks and complications that come with filing Chapter 7 bankruptcy, there are also many benefits—which is why it's so important to know what they are before you make your final decision.