Bankruptcy will ruin your credit for some time to come. A Chapter 7 bankruptcy can remain on your credit report for up to 10 years. Although a bankruptcy stays on your record for years, the time to complete the bankruptcy process under Chapter 7, from filing to relief from debt, takes only about months. If you decide against Chapter 7 when it may be the right decision for you, your missed debt . Koll Center Pkwy, Pleasanton, CA It is a common misconception that you cannot get rid of tax debts in Chapter 7 bankruptcy. This is not true. You can discharge (wipe out) income tax debts if they meet the qualifications, limitations, and restrictions laid out below. Individuals may file Chapter 7 or Chapter 13 bankruptcy, depending on the specifics of their situation. Municipalities—cities, towns, villages, taxing districts, municipal utilities, and school districts may file under Chapter 9 to reorganize. Businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize.