Bankruptcy generally isn't a good idea because, although it probably seems much easier than credit counseling or selling some of your belongings, it can haunt you for a good portion of your life.

Think of it this way: Would you ever loan money to a friend who once borrowed it but never paid it back? Neither will lenders, including those that loan money for cars and homes and those that offer unsecured loans like credit cards and store charge cards.

You may even have trouble getting the utilities for your house or apartment hooked up if you've declared bankruptcy. (This means you'll have to prepay these services until you establish a good payment record.) In addition, many stores and other companies won't accept checks from you if you've recently declared bankruptcy.