Each year more than 2 million Americans file for protection under the federal bankruptcy laws, according to the American Bankruptcy Institute.  Some are credit abusers or are financially irresponsible. But average working families who try to pay all of their bills can find themselves in financial trouble, too. The sudden loss of a job, medical bills, a divorce or even a natural disaster can quickly wipe out a life's savings. For many, bankruptcy provides a second financial chance.

Bankruptcy is usually used as a last resort, after other attempts to solve a financial crisis fail. You may want to talk with a credit counselor or an attorney to see if you really need to file bankruptcy, or if an agreement can be reached with your creditors.