What action should be the last step in most situations when dealing with increasing and uncontrollable personal debt?

Declaring bankruptcy is often considered the last resort when dealing with increasing and uncontrollable personal debt because it has significant long-term implications. This legal process allows an individual to either discharge most of their debts or create a repayment plan, depending on the type of bankruptcy filed. However, it severely impacts credit scores, remains on a credit report for years, and can affect future borrowing and financial decisions.

Before considering bankruptcy, individuals typically explore various alternatives to manage their debt, such as hiring a credit counselor, which can help them strategize debt reduction without such drastic measures. Getting a second job or paying off debts as much as possible are also proactive steps to mitigate financial strain. These options allow for efforts to manage and recover from debt while preserving creditworthiness and financial stability. Therefore, declaring bankruptcy is seen as the ultimate fallback when all other efforts have been exhausted and the situation remains unmanageable.