Generally speaking, Chapter 7 Bankruptcy is a kind of debt liquidation. It allows you to discharge all your debts (with some exceptions) without having to pay them back. Chapter 7 bankruptcy can be a tremendous fresh start. The greatest thing perhaps about filing for bankruptcy is that it immediately stops all creditor harassment, creditor calls, lawsuits and wage garnishments. It automatically puts a stop to collection calls, garnishments, pending court dates, foreclosure and repossessions. If you are behind in house payments and facing foreclosure however, Chapter 7 will force you to either pay the full amount of all back house payments or simply give up the house. Many people actually find this to be a good option, because when you lose the house, you lose all the ongoing responsibility that goes with it. This includes getting rid of the first mortgage, second mortgage and any delinquent property taxes. If you want to keep your house and can’t come up with the back payments, you will need to file Chapter 13 bankruptcy.