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Bankruptcy
When you file for protection from creditors due to the inability to meet payment obligations. You can either enter bankruptcy voluntarily, or you can be forced to petition for bankruptcy after your creditors bring an involuntary petition against you. In general, the 2 main types of consumer bankruptcies are: (1) Chapter 7, which wipes out most of your unsecured debt - taxes, alimony and student loans are often exceptions; and (2) Chapter 13, which lets you keep your assets if the court approves your plan to repay your creditors. Bankruptcies stay on your credit report for 10 years.

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