Bankruptcy and Debt are two different processes that need to be dealt with separately.

Bankruptcy
 
Bankruptcy is a federal court process processed  to help consumers and businesses get rid of  their debts or allow a repayment under the umbrella of the court. Bankruptcies are also described as "liquidations", and have two main kinds. Both types have their individual rules and policies, including what they cover, who is eligible, etc.

One type is the Liquidation Variety, is also called Chapter 7 type, where the  property is sold or liquidated to help make payments of as much debt as possible, while leaving one with enough property to make a fresh start.

The other type is known as the Chapter 13 type of bankruptcy, is the most familiar kind of "reorganization" bankruptcy where you repay your debts over a period of 3 to 5 years.

In Liquidation Type or Chapter 7 type of bankruptcy, some of your property may be sold to pay down your debt. In exchange, most of ones unsecured debts will be erased.

You will get to keep any property that is termed as "exempt" under  federal laws available to you eg.,  your clothes, car, and household items. If you owe money on a secured debt, like a car loan, you have an option or choice to allow the creditor to repossess the property or paying an amount that is equal to the replacement value on the property.

When you file for Chapter 13 bankruptcy you have to submit a plan on how you will go about making the payments over the next 3 – 5 years.

In addition to Chapter 13, there are another two kinds of reorganization bankruptcy: Chapter 11 and Chapter 12.

Chapter 11 bankruptcy is the type of bankruptcy used by financially weak and ineffective businesses  to restructure their state of affairs, and Chapter 12 bankruptcy is almost the same as Chapter 13 bankruptcy.