Chapter 7 bankruptcy allows for the elimination of various types of debt. This can include credit card balances, medical expenses, utility bills, overdue rent, certain tax obligations, and mortgages. The process effectively erases these debts, providing financial relief to the filer.

Chapter 13 bankruptcy differs from Chapter 7 in that it involves a repayment plan rather than immediate debt liquidation. This plan typically spans three to five years. Upon successful completion of the plan, most debts are discharged. However, certain obligations such as student loans, child support, alimony, mortgages, and some tax debts may not be eligible for discharge under Chapter 13.

The duration a bankruptcy remains on your credit report depends on the type filed. A Chapter 13 bankruptcy will be visible on your credit report for seven years before removal. In contrast, a Chapter 7 bankruptcy will remain on your credit history for a period of 10 years.

Generally, retirement accounts such as 401(k)s are protected during bankruptcy proceedings. Under Chapter 7, these accounts are exempt from liquidation, and in Chapter 13, they are not considered assets. This protection is provided by the Employee Retirement Income Security Act. However, it's important to note that withdrawing funds from these accounts during the bankruptcy process may affect this protection.

Filing for bankruptcy jointly with a spouse is not a legal requirement. The decision to file individually or jointly depends on your specific financial circumstances. It's advisable to consult with a bankruptcy attorney who can provide guidance on the most appropriate course of action based on your unique situation.