We all know about the negative effects of bankruptcy, i.e. a mark on your credit report, but one must remember that there are two main positive effects of filing for bankruptcy.
No More Creditors
You will no longer have to deal with threats of repossession of your car, foreclosure of your home, garnishment of your wages or levying of your bank accounts. You will no longer have to dodge harassing phone calls and can rest easy knowing that your creditors can no longer take any action on your debts.
A Fresh Start
You get a chance to start over financially, as your unsecured debts will be eliminated. You'll be able to rebuild your finances and rebuild your life. Your credit will take a hit, but your credit most likely wasn't all that great before you filed for bankruptcy. After your bankruptcy, you'll be able to rebuild your credit and get a fresh start on life almost immediately. Its very common to have your credit score back on the 700s within a year or two of filing for bankruptcy.