Most people instinctively shy away from bankruptcy and would never consider it.
But there are many highly successful businessmen throughout the world who have been bankrupt at one time or another.
Some have been bankrupt more than once but still came through and became successful.
I am not suggesting it is an easy option here, it is not.
But part of your personal finance basics is to consider this option rationally.
The fact of your bankruptcy will be reflected on your credit ratings for the next ten years and you must remember this when making your decision.
Against that you will be able to start over with your finances and not have to repay your debts, or possible you will have to pay off a portion of them.
You also have to be aware you will not be able to get credit either.
Well, at least initially because you can probably be able to get small amounts of credit after a while which you can use to rebuild your credit score.
Another problem you could face is more indefinite in nature.
That is how your friends and family will take the news of your going bankrupt and of course, how you will be affected by their reactions.
No budget or financial analysis can ever quantify this factor, so you should think out all the possible scenarios of your decision and go through them.
Take your time over this and make sure you make the correct decision.
The question of whether you should apply for bankruptcy is your choice.
Your personal finance basics should let you know, after a complete analysis of your situation, whether it is advantageous for you or not.
You do need to think of your long term financial position here and by long term I mean in the order of ten years.