In 2009, over 1.5 million Americans filed for bankruptcy.  This process can help you either reorganize debt or discharge it altogether.  Before filing, you must receive credit counseling, which is a good side effect of the new, stricter bankruptcy laws.  During counseling, you will receive information on your other options, which may actually indicate that you do not need to file and can find other, less damaging ways to relieve your debt such as debt elimination or debt consolidation.  If you do file, the bankruptcy will stay on your credit report for seven years and make it difficult for you to obtain favorable loans and credit.  It is important to be aware that while bankruptcy can help alleviate debt, it takes an average of 10 to 20 years to fully recover financially.