Bankruptcy may be the right debt-relief solution for you if your debts are significant and you aren’t able to meet your payment obligations. By filing for bankruptcy, borrowers who are overwhelmed by debt can eliminate some or all of their unsecured debts, thus improving their financial situation and/or freeing up cash to pay their secured debts. Depending on the bankruptcy chapter you qualify for, you can relieve your debts within a few months or upon the completion of a three- to five-year court-approved repayment plan.