When your debt is too high to repay all or a large part of it considering bankruptcy is a good idea. Especially if you receive threatening phone calls from collectors or you are being sued or your wages are being garnished a bankruptcy will be effective in helping you getting out of your debt.

If you think you will incur more debt soon or you know that you will receive money from a divorce, an insurance or an inheritance it may be better to wait until you file. Those moneys would have to be turned over to the bankruptcy trustee if you received them 180 after you filed for bankruptcy.