For those with debt that surpasses their capability to pay, bankruptcy could be a solution to regain economic freedom. Debts could be discharged through the filing of personal bankruptcy. Under a particular chapter of the personal bankruptcy code most debts could be absolved while a filer continues to be in a position to keep some personal real estate. There are federal government and condition exemptions for homestead, jewelry, life insurance coverage policies and even more. For a full report on this contact your personal bankruptcy attorney. Consumer personal bankruptcy or a bankruptcy proceeding is the mostly filed. Chapter 7 and Chapter 13 tend to be filed in consumer personal bankruptcy. The complete purpose for personal bankruptcy is to permit debtors to get a tidy slate to create a positive credit history on.