But I would think that bankruptcy is the only way that some people can clear their expenses. If you file then you won't be responsible for credit card and some other payments and it's a way to save some of your property. Many people file because they are on the verge of losing everything.

I do see the bad part of filing but sometimes it's the only option you have.

Randle wrote:

Isn't it true that a bankruptcy takes 7 years to come off your record?

If I 'm not mistaken it takes 7 to 10 years to clear our record of that.

Perhaps if the fed keeps cutting interest rates this will have a ripple effect that might aid those who are overextended in their credit.

My divorce lawyer advised me to declare bankrupcy after my divorce. He said I could get rid of all my debts easily that way. I refused.

Where's the point in not taking responsibility for the debts you've accumulated? Where's the point in just giving up when it only takes a bit of discipline to get back into line and start paying off these things you bought? It ruins your credit. Of course you can get finance for other things after going bankrupt, but at a much higher cost. Is it really worth it??