"Change is inevitable. Change for the better is a full-time job." Adlai Stevenson
There is no single answer to this difficult question. The bottom line is that if you have no other way to deal with your debt load, then bankruptcy can offer relief from sleepless nights of worry and the dread that comes when a bill collector calls. A bankruptcy trustee can help you figure out whether debt consolidation, a consumer proposal, or declaring bankruptcy makes the most sense for your individual situation.
Ten years ago, when the North American bankruptcy rate was half of what it is today, a study by Michelle White of the University of Michigan showed that 17% of North American households would be better off financially if they filed for bankruptcy. But, judging by the relatively small amount of debtors who file for bankruptcy, the decision is more than just a numbers game.
You also have to consider your own sense of responsibility to your creditors and the repercussions on future plans that may have a credit component such as mortgages and leases. On one hand, you promised to pay back the money you borrowed (usually without realizing the impact of 10-30% interest rates), on the other hand, the lender made a business decision, and perhaps it was simply a bad one on their part.
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