One problem with bankruptcy is that it is one of the biggest negatives that you can have on your credit history. Credit agencies can report Chapter 7 bankruptcies for 10 years. Chapter 13 bankruptcies will stay on your record for seven years. Lenders are allowed to consider a bankruptcy as part of their decision whether to extend credit. Some will be willing to grant credit right away while others may want to wait for a number of years.
Many filers find it almost impossible to obtain a mortgage or unsecured credit card for years.
And when they do find a lender, they will pay a higher interest rate on the money they borrow. And it's not only your credit history that will suffer. Federal law allows landlords and employers to consider bankruptcy. It is legal to refuse to rent or hire or promote someone because they've declared bankruptcy. Other people come through bankruptcy with less disruption.