[Purrybonker]

Bankruptcy laws are there for a reason. Most jurisdictions/cultures have evolved well beyond the debtor's prisons and social stigma of being unable to meet one's financial obligations, for whatever reason. *

Ignore the social implications and the "morality" lessons referred to here. Creditors make scads of money via sloppy lending practises. If you are deep in a hole, digging your way out may hurt you big time in the long run. Take the easy (not really so easy, actually) out. But...

1) Take the advice of an insolvency specialist in view of your specific situation.

2) Fix the problem - adopt fiscal discipline so you don't ever get back in the same hole again.

*(well, notwithstanding the new US legislation on the subject which will help to protect the poor bankers from themselves due to their ridiculously open handed credit granting practises. Think of the changes to bankruptcy legislation as being akin to retailers being given license to chase down prior customers for buying stuff from them too cheaply in the event they start to "go bust". In other words, if I run my business sloppily - I need government protection from my customers- this is capitalism at it's best?)