system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: What exactly happens when you declare bankruptcy?
gpt
As an individual, when you declare bankruptcy, all of your unprotected assets are surrendered to a trustee appointed by the courts.

The trustee sells your assets and uses that money to pay off as much of your debt as possible. The remaining debt, except for student loans, is then legally forgiven, with the debt holder receiving nothing.

For the next 10 years your credit is garbage.