First thing you need to ask yourself is "Is bankruptcy right for me?" If your considering filing for bankruptcy you need to know that there are solution out there for you.
Here's how the process works: When you file for bankruptcy the collection calls will stop! There will be no more calls demanding payment.
That's a good thing.
then depending on how you file for bankruptcy will determine what happens next:

• Chapter 7 bankruptcy is the most common.
  The types of debts that are erased are things like your credit card balances and medical bills.
  If you have student loans or back taxes those typically will not be erased if you file for bankruptcy.
  If you own property it may be taken and sold to pay the creditors.
  The laws vary by state so you would need to talk with a knowledgeable bankruptcy attorney.
  Some states only protect a small of of home equity form creditors while other states protect nearly all of your home equity form creditors.
  
• Chapter 13 bankruptcy allows you to keep property that may have been used to pay your creditors.
  the downside of this type of filing is that In return, you have to agree to setup a repayment plan to pay some of your debts over the next 3-5 years.
  As long as you stick with the payment plan and you follow through with the agreement the remainder of your eligible unsecured debt will be permanently erased.
  

No matter what type of bankruptcy you file your credit is going to take a hit.
Bankruptcy drops your credit score by many points but sometimes individuals benefit more from filing for bankruptcy.
Having a low credit score isn't the end of the world either.
What happens is, you will have more trouble getting credit and the interest rates that creditors charge you will be higher.