It’s easy to be in denial about debt. But when anxiety and fear take over, it can affect more than just your financial life. Bankruptcy can give you a way out. But how it works depends on whether you choose Chapter 7 or 13. Find out which one’s right for you.

Sometimes called a liquidation bankruptcy, Chapter 7 involves the sale of your nonexempt assets, such as your second car, family heirlooms, and a second home. It might be right for you if you have a lot of debt and not a lot of income.

When you have so much debt that it seems like you’ll never pay it off, bankruptcy can seem like your best or only option. But declaring bankruptcy carries long-term consequences that make it worth avoiding if you can. Learn how to avoid bankruptcy and why you should consider your other alternatives.