Bankruptcy is just one of many life rafts you can grab onto when you're drowning in debt. J Studios/Getty Images

For many households, the financial stress has been mounting over the last couple of years. Between today's high short-term borrowing costs, record-high credit card balances and the rising cost of living , many borrowers feel like they've hit a wall in terms of the flexibility in their budgets. And, as the debt issues mount, filing for bankruptcy can feel like the only path forward, as it offers a way to wipe the slate clean from unsecured debt. That's partially why so many people are considering it right now.

But filing for Chapter 7 or Chapter 13 bankruptcy is one of the most serious financial decisions you can make, and while it can be a path toward relief,

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