Is it all that bad to claim bankruptcy?

This is a personal decision, greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount. Being hassled by creditors when you are broke is nerve wracking for starters. Secondly, the decision to file should not be made solely to stop demanding creditors. Though filing temporarily stops creditors from engaging in out-and-out enforcement lawsuits, secured creditors can apply for "relief from the stay" and then continue their efforts to repossess or foreclose. Furthermore certain kinds of debts-chief among them, student loans, alimony and support obligations, drunk driving restitution, and debts incurred through fraud-can't be discharged in bankruptcy.

Depending on your circumstances, bankruptcy may or may not make sense for you. If after the bankruptcy you will be no better off than you were before, why do it?

The decision as to whether and when to file a bankruptcy petition should be based upon the facts of your individual case.