Unfortunately bankruptcy is sometimes your only way out of your debt situation. If you plan to file for bankruptcy, you must first get credit counseling using a government approved organization. This has to be done within six months before you file for bankruptcy.
You can get a list of some government approved counseling services at this government bankruptcy help site.
Fees to apply for bankruptcy in federal court can amount to several hundred dollars.You will be filing for Chapter 13 or Chapter 7.
Chapter 13 will allow you to keep some of your property if you have a steady income. Look into this if you want to keep your home or car, for instance. A repayment plan will be set up using your current income level that will allow you to repay your debts over a three to five year period.
Chapter 7 bankruptcy is a different animal. This is straight out bankruptcy and some of your property could possibly be sold in order to relieve your debt. You'll have to wait 8 years after receiving a discharge of your debts before you can refile again but the idea on this website is to get out of debt and stay out. If bankruptcy is your only option, once you get out of debt, read how to stay out of debt.
Bankruptcy can stop foreclosures, repossession, utility shut off and more, but keep in mind certain loans such as student loans cannot be discharged through bankruptcy.