All else equal, the higher the debt to equity ratio, the higher the risk of bankruptcy is true.
You won't be required to pay back some obligations to your creditors after filing for bankruptcy protection because the court will grant you a discharge. As stated, after you receive a debt discharge, your creditors are prohibited from contacting you or making any sort of effort to collect the debt.
Examine your possibilities for debt relief if you're having trouble. However, declaring bankruptcy may be the wisest course of action if your consumer debt—the types of debt indicated above that can be discharged—equals more than half of your income or if it would take you five or more years to pay off your debt even with extreme austerity measures.
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