Bankruptcy may not be the right option to you if any of the following points are true.
You can repay your debt yourself in the next 3 to 5 years or by using a credit counseling service. A debt management plan is definitely a better alternative to filing for bankruptcy as long as you use a legitimate credit counseling service to implement the plan.
If your debts are the kinds that cannot be wiped out by a chapter 7 or chapter 13 bankruptcy such as student loans, child support and unpaid taxes, bankruptcy may not reduce much of the financial burden. However, if filing for bankruptcy helps you to discharge off certain other debts; you may find it easier to pay off these debts that cannot be discharged under the bankruptcy law.
You cannot file for bankruptcy if you lie about your income, or have committed fraud by lying to your creditors about assets or information on your credit application.
You cannot file for bankruptcy if you have ran up large amount debt buying luxuries recently which include vacations and entertainment. Doing this while you are supposedly broke can constitute fraud. If you ran up a debt on luxuries and then lost your job you might be able to file for bankruptcy but the bills on the luxury expenditures might not be wiped out.
You cannot file for a chapter 7 bankruptcy if you have received a discharge for a previous bankruptcy within the past six years.
You may want to rethink filing for a chapter 7 bankruptcy if you have equity in a home or away per or other property that is non-exempt under the state law.