There are some people that look at bankruptcy as their one way ticket to be free from debt, but the effects are financially devastating and you should try to avoid in being put in that situation always unless you really have no choice.
If ever you will decide to file for one, you would not be able to obtain loans for quite a long time since the record would stay for you for 10 years.
Most lenders do not like to look at credit reports with such distinction because it shows how you have failed to manage your money in the past.
If you are badly and debt, but you are not in a situation where bankruptcy is in the horizon just yet, you should consider some alternatives to settle the problem.
If you are going to see a financial advisor or check out debt management sites, they can tell you a lot of tips how you can avoid filing for Chapter 7 or Chapter 13 and clear all your bad credit in a few years or so.
While you are still in an early stage, you might consider trying out Debt Settlement.
This is ideally done if you are having a hard time dealing with minimum payments of your present accounts.
You either hire a settlement agency or handle it personally and ask the creditors for their debt reduction program.
In this stage, they can help reduce your balance in half or so.
They may even give you a lower minimum rate and you can pay it for a few more years or so.
Debt Management is also one of the most viable options you have.
When you are in this program, you would voluntarily enroll yourself to debt management classes or hire a credit counseling agency so you can be able to reduce your interest rates and avoid penalties.
If you would like to take control of your debt and your life, you can turn to do it yourself credit repair.
The government supports such moves so you can look their site up and look for ways how you can be able to pay off your debt and save yourself from filing bankruptcy in the near future.