Which statement best describes what happens when people declare bankruptcy?

Bankruptcy can discharge some debts, but it does not erase every kind of debt. Depending on the type of bankruptcy, a person may also work out a repayment plan that changes how or when debts are paid. So “some debts can be eliminated, and loan terms are renegotiated with lenders” is the best description; people do not generally have to agree never to take on more debt.

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