Official - The New Bankruptcy
rdquo; mdash;Accounting Today nbsp; You know bankruptcy will help you get back on your financial feet.. Chapter 13 bankruptcy works by keeping creditors at bay while you: catch up on a house or car payment pay off an overdue tax or support balance, and pay less on other debt, such as credit cards and student loans. For instance, you’ll learn that Chapter 7 will: wipe out credit card balances, utility bills, medical debt, and more protect property you need to work and live, and take about four to six months to complete.