Just because you're overburdened with debt and fear that you have no choice but to declare bankruptcy, that doesn't mean it will be easily possible. Bankruptcy law has changed a great deal in the last few years, and you probably won't be able to declare a personal bankruptcy until you're well behind on all of your bills.

While bankruptcy law was originally intended to allow you to make a second start after incurring overwhelming debt, don't expect it to be easy or simple to file these days. You'll have to set up payment plans for all your existing debts, and in most cases they'll be handled by a court-appointed trustee who will collect the money from you to pay them.

Although bankruptcy law varies from state to state, you should be aware that even in states like Texas, where the court has to leave you with your homestead and one automobile, you'll still have to make the payments on those items to avoid foreclosure and repossession.