Bankruptcy is a bit of a dirty word in North America.
It is associated with failure and the inability to live up to your obligations.
But lets face it, we all fail sometimes and we can't always live up to everything we set out to accomplish.
Sometimes declaring bankruptcy is the right thing to do.
1.
You will not be able to pay back your debt under your current circumstances, and your circumstances are unlikely to change.
If you are buried in debt that you are unable to pay, and will not every be able to pay.
It is much better to bight the bullet and declare bankruptcy.
There is no reason to drag you and your family through the mud collecting late payment after late payment and being harassed by creditors if there is no end in sight.
Get yourself a clean slate and start over.
2.
You are short selling a property and you cannot negotiate to have the difference forgiven by the bank.
Many people belief a short sell means you don't owe the difference in the principle owed and the amount paid by the buyer.
This is not always true! Sometimes you must use the bankruptcy process instead in order to have this debt completely wiped clean, nothing is worse than owing money for a house you no longer own! 3.
Your business needs to declare bankruptcy because it is no longer solvent.
Sometimes it is better for your business to go under than it is to pull from your personal resources.
Remember, if your company is a corporation you can always try again, but if you pull you and your family into debt, you might not get a second chance.