# Bankruptcy

*Borrowing & Credit — Finicade finance glossary*

Bankruptcy is the legal process that discharges or restructures debts you cannot repay, in exchange for court supervision and severe credit consequences. US consumers mostly use Chapter 7, which liquidates non-exempt assets and wipes qualifying debts in months, or Chapter 13, which runs a three-to-five year repayment plan and can save a home from foreclosure. Student loans, most taxes and child support generally survive. It stays on a credit report for seven to ten years.

**Also known as:** Chapter 7, Chapter 13, personal bankruptcy, insolvency

**Related terms:** [Debt Settlement](https://finicade.com/glossary/debt-settlement), [Charge-Off](https://finicade.com/glossary/charge-off), [Credit Report](https://finicade.com/glossary/credit-report), [Defaulting on a Loan](https://finicade.com/glossary/default-credit), [Collateral](https://finicade.com/glossary/collateral)

Source: https://finicade.com/glossary/bankruptcy