When bankruptcy is best

The bills are piling up. The
collection agencies are calling. At night you lie awake, wondering how
you're ever going to cope with your debts.

At what point does it make sense to throw in the towel and file for bankruptcy?

There's no one-size-fits-all answer to that question. In purely financial terms, the answer depends on:

• Your current situation.
• Your future prospects.
• The laws in your state.

There
is, of course, another factor to be weighed, which is your personal
sense of responsibility for repaying the debt you've incurred. We'll
get to that in a moment.

For now, let's explore the purely financial and legal aspects of bankruptcy