For many people who borrowed heavily in the good times, these new harsh economic times have come as a very unpleasant surprise, putting some in a seemingly impossible position.
Everywhere you go there seem to be companies keen and eager to help you get rid of all your debt, (or make money out of you depending on your point of view), which makes the whole thing look so easy to walk away from.
And in many ways it is.
Assuming that you pass the means test and qualify for chapter 7 bankruptcy, after the court has sold all your worldly goods, you are debt free after 90 days.
All that gnawing fear and uncertainty as to how you are going to make ends meet is behind you, however, there is a financial future to be faced.
The fact is, life changes after bankruptcy, and some of the things we used to take for granted can be a problem, especially credit cards and bank accounts.
You may feel that you got into problems with credit in the past, so why take it on again, particularly when it can be such an effort to obtain after bankruptcy? The fact is that credit is necessary for certain items like cars, without which modern living is pretty difficult.
Credit restoration should be part of your strategy before the actual filing.
This is because you want to ensure that all your accounts are included in the bankruptcy, and show a zero balance in the case of chapter 7.
In case you don't know, your credit score is a number complied from your creditors to evaluate how credit worthy you are.
So the first thing to do is contact your creditors and ask them if they would stop reporting your perceived creditworthiness to the credit bureau.
They may ignore you, but even if you could persuade just one or two, your credit score would receive a huge boost.
The next step may be surprising, but it is to get a new credit card.
The fact is, if you can use it just for little things and keep tight control, ensuring that you pay the balance off every month, you will be demonstrating responsibility to the credit card companies, and in turn your credit rating will improve.
If you cannot get a regular card, go for a secured card.
This limits your credit to an amount equal to the deposit you give to the issuer of the card.
This limits your spending but means that you can't overspend and get into debt, because ultimately the money to cover your spending is held as a deposit.
It may seem unnecessary to use a card if you could simply use the cash deposited, but the fact is, using a secured card shows the credit agencies you are spending responsibly, thus improving your score.
Lastly, if you can persuade a relative or friend to have your name added to one of their credit cards, as long as they have a good track record, their history will reflect on you.
The other person is unaffected by your past bankruptcy, and you don't even have to use the card yourself.
If you want to avoid all this, then you should also investigate whether a chapter 13 bankruptcy is more appropriate for you, as no assets are sold and all creditors are repaid under a repayment schedule, however the terms can be harsh.
Just make sure you get professional legal advice before filing any sort of bankruptcy.