It is common for a person to get into a negative financial state that seems impossible to escape. We often see these situations arise after divorce, a medical event, loss of employment, a business going bad, a bad deal on a vehicle, or landlord-related issues. Anyone can be caught in such circumstances. A Chapter 7 liquidation/discharge bankruptcy is often a good way to get a clean slate. Alternatively, a Chapter 13 payment plan can be a useful tool in managing and overcoming debt over time.