When is the right time to file for bankruptcy?

Yes, bankruptcy should be the last resort. However, the decision depends on how intense your financial hardship is.

If the person has good earning, then he/she can avoid bankruptcy by considering professional debt relief service?

Before thinking of filling bankruptcy, ask yourself few questions to assess your financial status:

1. Are you able to make only minimum payments on your credit cards?
2. Are collection agencies trolling you too much?
3. Do you use credit cards too much to pay for necessities?
4. Are you unsure how much you actually owe?
5. Have you ever considered debt consolidation service but failed to keep up?

If your answer is "yes" to 3 or more questions, you can think of filling bankruptcy. But if you have the slightest chance of putting things back by considering a professional debt help program..just give it try!!

Bankruptcy is a good options due to the following reasons:

Automatic stay is imposed
You can postpone foreclosure
Your credit utilization ratio can increase
You can avoid lawsuits

If you are confused, it is better to consult a financial advisor.