Last year, personal bankruptcies rose more than 30 percent, and more than 1.4 million of them were protection filings. Job losses, business failures, uninsured health conditions, and divorce sent individuals to bankruptcy courts for relief against creditors. Despite achange in bankruptcy laws in 2005which made it harder to file under Chapter 7there has been a resurgence of filings under this debt plan.

Chapter 7 absolves debts which cannot be paid. In Chapter 13 bankruptcy filing, an individual signs up for a time-limited repayment plan and, in return, gets to keep certain assets. Creditors often get more money in Chapter 13 filings.
The faltering economy has provided more leeway to those in financial trouble. But despite the relative ease of filing bankruptcy, there is an emotional downside that should be dealt with before one can successfully move on. Bankruptcy, like divorce, marks the unhappy ending of a relationship.

 
If you need your own personal bailout, and have run out of options, talk to an attorney. If you decide to file for bankruptcy, make sure you include emotional help in your plan:

Acknowledge your feelings and talk to a doctor. It's natural for something like bankruptcy to have a severe affect on you. You may need medication to help you cope.
Concentrate on improving your financial situation rather than blaming yourself. The blame game won't accomplish anything at this point.

The best thing to do is look forward. Find a bankruptcy support group. Debtors Anonymous is one group that provides support to people who are overcome with debt. If you can't make a meeting, they even offer online or telephone support. Many depressed people let themselves go. Make sure you keep your appearance up.

Eat regularly, but don't overeat. Get the help of a counselor or psychologist. Set up appointments for sessions and talk about your feelings surrounding the bankruptcy.