Bankruptcy is a valid legal tool used all time by people ti get out from under crushing debt before it crushes them. In many states your personal residence is

Bankruptcy is a valid legal tool used all time by people ti get out from under crushing debt before it crushes them. In many states your personal residence is protected and exempted from bankruptcy so it would not be wise to use your equity or get to the point of foreclosure in lieu of filing bankruptcy. If you have large amounts of unsecured debt (i.e personal loans, credit cards, etc) then I would absolutely explore bankruptcy before becoming homeless or losing my home