would be wise to declare bankruptcy when you are in dire straights. Owing money or having a large amount of debt is not reason enough to declare bankruptcy. If you no longer have steady income or none at all, you are working and making less than you need to get by and do not own a home or a car it may be time to consider filing for bankruptcy. Also, going into business can sometimes cause your earnings to be attached and if the business is in trouble you can be also. When you file for bankruptcy previous creditors can no longer collect and although you may feel the burden lifted it will also take time to rebuild and can sometimes be a long and arduous process.