Who should consider chapter 7?

* If there is no hope of repaying any of your debts.

* If there are no cosigners involved, 

* If court action by creditors is imminent, filing stays all collection proceeding while in court.

Downsides
Ruins your credit. If you have a cosigner, they will still be responsible for the debt you discharge. Pay attorneys, court and filing fees upfront. 

Alternatives
If you can't discharge enough of your debts or have to sacrifice too much property you may want to consider chapter 13 or a credit counseling / debt consolidation repayment plan.