Is Bankruptcy the Easy Way Out of Debt?

According to the statistics provided by uscourts.gov, there were nearly 1.2 million bankruptcy filings in the last twelve months (twelve months ending in March 2013 are the most recent as of this writing). In 2012, that number was nearly 1.4 million. In a country of about 240 million adults, these filing numbers represent something like 1 out of every 200 adults in the US.
With so many people turning to bankruptcy to get out of debt, it seems like an easy "out". Let's take a look at what's involved, what the implications of a filing are, and how it compares to other debt relief options.

Is the Bankruptcy Process an Easy Out?

Who Can File for Bankruptcy?

It's a simple question and actually has a simple answer. Generally, anyone can file for bankruptcy. Whether it would be advantageous for you to do so and if you are eligible for a certain chapter of bankruptcy requires that you evaluate your debts, your income and your equity.

Step One: Your Debts
First, you are going to want to find out what bankruptcy can do for you, and weigh that against the effect it will have on your credit. To do so you need to understand which of your debts can be discharged in bankruptcy.

The "Should I File Bankruptcy" Test

Ok, so no test can tell you if you should file bankruptcy, but there are some questions you should ask yourself, and numbers that you can consider to help determine if bankruptcy is a viable solution to your debt problems.

Who Do You Owe?
The first thing you need to determine is whether or not your debts can be cancelled by bankruptcy.