Bankruptcy has become a type of quick fix for debt that has gotten out of control. Many individuals think it is easy to wipe the slate clean and abolish debt by going bankrupt. The fact is that it isn't that easy, however, and it must only be used as a last resort.

The real process for filing bankruptcy - the paperwork process itself - is somewhat simple, but it goes further than that.  You'll have to be able to justify the reason for bankruptcy, which will enable open access to your financial history for inspection by the courts.  It will also be open to objections from your creditors, who clearly have an interest in stopping you from declaring bankruptcy. 

There are also causes of various long term effects of bankruptcy.  Any credit cards that have balances that are wiped out by the bankruptcy will evidently be cancelled, but any other credit card accounts you have will probably be closed too. 

You will find it hard to qualify for loans for a home, auto or other big purchases.  If you are approved, it will likely receive much higher interest rates than the norm. 

Another thing is that not all debts are cleared by filing for a bankruptcy, either.  Student loans, outstanding tax bills (within the past three years) and many other forms of debt will be exempt, leaving you with the responsibility to those payments even after going bankrupt. 

A bankruptcy will stay on your financial record for 10 years, during which time you will find it difficult to qualify for any sort of financing, even though you keep a perfect credit record throughout that time. 

A bankruptcy is usually viewed as a particularly bad mark on your credit score - more so than a low FICO score, late payments or other problems. 

On the other hand, there are some cases where bankruptcy is the best solution.  It will stop debt collectors from harassing you (provided they receive the right notification), any foreclosure proceedings will be stopped and your wages cannot be garnished. 

If credit card debt is partially to blame for being in a position of bankruptcy, there could be another hidden benefit.  Since you will not be able to qualify for credit cards after a bankruptcy, you will be have to stop spending irresponsibly since you won't have access to any credit cards. 

Making the decision to declare bankruptcy can be painful, but if it is unavoidable, the sooner you could get it done the better.  It will ease the stress of dealing with uncontrollable debt, and you'll start to build a new credit history to change the old one.