Personal bankruptcy is meant for individuals that need a way to reduce their debt and stop collections and garnishments. If you have any amount of debt in access of $10,000, you should talk with a counselor about consolidating all your bills and making payments or talk to a bankruptcy lawyer about what type of bankruptcy you can file. Your secured debt and you income is a factor in what chapter bankruptcy you should file. If you have secured debt that you want to keep such as a house and you owe two months back mortgage payments, you will want to file chapter 13 to save the house.Personal bankruptcy works differently with each of the three chapters that you can file under when the time comes. Chapter 7 discharges all debts without a repayment plan. A chapter 13 offers a repayment plan for a secured debt first and then unsecured debt secondly. Chapter 12 is the same as chapter 13, but it is for family farmers. If you have cosigners for a loan, they will still be responsible for the debt. There may be circumstances, which your lawyer can explain to protect the injured party.If you file bankruptcy chapter 13, which requires a repayment plan, your payments are reported to the credit reporting agencies. Your credit history will show the amount of payments made, which creditors were paid and if you completed your repayment plan as required. After bankruptcy, check with your credit reporting agency to make sure they are recording the correct information.Some people wonder if they can lose their jobs because of the bankruptcy information on them. If you are a bonded employee, this may cause problems, but any other jobs will not be in jeopardy. If you are discharge from a job because of a personal bankruptcy, you can talk with the HR department or talk to a lawyer.