There are different people who have different opinions about bankruptcy. Some view it as a terrible thing which could happen to you if you are not careful with handling finances while some others look at it as an opportunity to get back on your feet and have a second shot at life. Though opinions may differ, the truth is that bankruptcy is a legal option of dealing with your current financial situation. But for those people who are wondering whether bankruptcy is a good option to take when finances are very bad, it should not be the case. This is a serious legal condition where the effects of declaring personal bankruptcy are far-reaching and affect you in the future rather than presently.
Of course, if there is no other option available to you, then you can always take up bankruptcy but you should do it only under the careful consideration of a lawyer who is well-versed in this. The bankruptcy rules have changed since 2005 and they have become more stringent and tough. So it is very necessary that you take the advice of a lawyer. Though the fees would be extra for paying the lawyer and this is a problem when you are filing for bankruptcy, it is a better option than to get embroiled in legal rules which would cease to make sense to you after the first line.
If you are filing for complete bankruptcy, then you have to do it under chapter 7 which would absolve you of all debts. But this has deep effects on your credit rating for 10 years, during which you would not be able to take any loans. Also, most people choose this option only if there is no chance of getting some money to pay off some of the debts.