People generally file for bankruptcy because they:

A) have more debt than the can pay

B) don't want to pay their debt

C) don't want to borrow any more money

D) want to keep their credit report clean

The correct answer is A) Have more debt than they can pay because there are laws, generally by the state, that limit when people can file for bankruptcy. You are not allowed to file for bankruptcy unless you are unable to afford your debts. Choices B, C, and D, along with being illegal, are also unethical, especially in terms of business.