Finding yourself in a position where you are in more debt than you can feasibly afford to pay back and you have constant calls from creditors can be a terribly stressful situation.
It might seem, when you feel so stressed, that declaring personal bankruptcy would ease the burden of stress you feel.
But this might not necessarily be the case.
You should certainly consider the consequences of declaring personal bankruptcy before you go ahead and do so.
The first thing to bear in mind is that declaring personal bankruptcy invariably leads to bad credit.
Your bankruptcy will remain on your credit file for ten years.
And while it might not be absolutely impossible to obtain credit during this time, if you are able to do so you will almost always face a high interest rate as a high risk borrower.
Although, by the same token, having your credit restricted in such a way might not be a bad thing! It will force you into a situation where you have to rely less on credit and more on living within your means, buying only what you can afford and getting into altogether better spending habits.
This could be the reformation you absolutely need to ensure you never end up back in a situation where you have to resort to declaring personal bankruptcy again.
Another consequence, though more a consequence for creditors than for you personally, is that creditors whose debts are wiped out by your bankruptcy will not see that money again.
If this is a big credit corporation then that might not instigate much guilt of sympathy.
However, smaller businesses who lend money are impacted terribly by this.
You should also bear in mind that your bankruptcy will be public record and therefore could well damage your reputation as well as make you feel embarrassed.