Bankruptcy should always be the last resort.
It is one of those things that you just can't undo and as a result should be treated very much as the last thing to consider rather than one of the first.
So, if you're thinking about declaring bankruptcy consider the steps below before you make such a big decision.
1.
Make a list of all your debts Before you can figure out how to solve your debt problem, you need to know exactly how much money you owe.
That means getting a list of all the people you owe along with amounts and interest rates.
That way you know who to pay off first!  2.
Cut down on unneeded expenses At the same time as you list your debts it is probably a good idea to write out what you spend each month on things that you just don't need.
For example eating out when you could eat in, going for a beer each night instead of having friends over for a can or two.
3.
Get Use your friends and family to support you If you let people know what you're doing and what you're going through they can offer you help and advice - especially when times get tough.
4.
Liquify assets When you need money to pay off debts it is time to take a long hard look at your asset list.
See what you can sell and see if you can release money from your property through releasing the equity in your property via refinancing.
5.
Get debt counseling Talking to an expert who has seen many people in a similar situation to you is a great way to get someone else to look at your debt plan and review it.
This will give you piece of mind and help you know if you're on the wrong path.