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You can see a lot of media attention on bankruptcy being the only option should you have credit problems.  In truth, there are many options to consider when facing the possibility of bankruptcy.

An option that I would urge you to consider is getting involved in a debt negotiation program.  Basically, you would get some credit and bill consolidation help to reduce your monthly payments and reduce your debt level.  The goal here is to be debt free in a short period of time (less than three years).

Now, you have to be careful with this option, because under the terms of the lending contract, your lender has the right to sue you.  Though it doesn’t happen very often, you need to be aware of the possibility.

If you are suffering mostly from credit card debt, come credit card negotiation services may be of some use to you.  In this instance, the company that you hire on your behalf negotiates with the credit card company to lower the balance on your cards by up to fifty percent, with the goal of having them paid off in less than three years.  Though your credit score suffers a little by participating in this program, it is still a better option than bankruptcy.

So, be sure to check out your options before declaring bankruptcy - there may be better options available to you with more favorable consequences.