The debt piles up. Making minimum payments is a struggle. You snap at friends and coworkers. The stress keeps you up at night. There seems to be only one way out: File bankruptcy.

In some cases, filing for bankruptcy is the practical choice — but not all. Before you make the decision, it’s important to understand all your options. Start by asking yourself these five questions.

1. What are the Different Types of Bankruptcy?

There are three bankruptcy categories called “chapters.” If you’re considering filing, the right one depends on your assets, types of debt and future financial stability.

• Chapter 7, Liquidating Debts: Any individual or business entity can wipe out most debts by declaring Chapter 7 bankruptcy. Some assets are exempt, but a trustee sells property and cash to pay off the debts. Most debts are removed, and you start over with a clean slate. However, because Chapter 7 is on your credit report for 10 years, reaching that clean slate can take a long time.
• Chapter 13, Wage Earner Plan: This bankruptcy is for individuals with regular incomes who want to keep assets. Chapter 13 proposes a three- to five-year repayment plan to clear debts. A Chapter 13 bankruptcy remains on credit reports for seven years.
• Chapter 11, Reorganizing Debts: Businesses primarily use Chapter 11 bankruptcies to manage debt so they can continue operating.

2. What Is Owed After Bankruptcy?

Only some debts are cleared with bankruptcy. Others are still owed and may be owed in full. All secured loans, like a house or car, must be paid off or you’ll lose your house or car. Certain other debts — child support, alimony, student loans, court-imposed fees, and some taxes — are also not forgiven. The kind and amounts owed dictate which bankruptcy is filed. Knowing what remains when the dust clears is crucial to decision-making. As you explore your options, educate yourself on common bankruptcy myths.

3. What Can You Keep After Bankruptcy?

Everything you own is valuable, and you may keep some of it. Not all can be protected. If a home has too much equity or money is in a retirement account, the Court can claim them to pay off debts. If you own a riding mower, a paid-off ATV or an RV with equity, the Court could claim and sell them to pay debtors. The same can apply to baseball card collections, valuable family heirlooms or other things you own that have resale value.

4. What Happens to Personal Finances After Bankruptcy?

Losing your credit rating is a significant consideration. Running behind makes your score drop precipitously, but as you catch up, you rebuild your rating. Bankruptcies sit on credit reports for seven to 10 years. It will be a challenge to get any credit for years. Even then, the interest rates will be well above prime.

Many property managers and insurance companies check for bankruptcies before approving a deal with you. The “BK” on your credit report could drive up premiums or rental deposits. If you do decide to file, read up on how to rebuild your finances after bankruptcy.

5. Are There Alternatives to Filing Bankruptcy?

There are ways to overcome debt without filing for bankruptcy. A free, confidential credit counseling session can help you understand your options based on your individual circumstances. You’ll discover if a debt management plan is right for you, which can help you climb out of debt without the negative impacts to your credit score and financial life.

Learn more about a debt management plan vs. bankruptcy.