how do you know bankruptcy is the best option?

It depends on your situation...how much you owe versusu how much you make, what you own, etc. There's abook that's from Nolo that's really good. You might can view it at nolo.com. It goes through everything and has a checklist to help you decide. As far as losing your home, if you file Chapter13, you'll most likely keep it. Chapter 7 can be tricky. It depends on if your current on payments and how much equity you have. Every state also has homestead exemption laws that can help you keep your home. If you're not current, under CH. 7, you will most likely lose your home. They can take certain personal property under Ch.7 if it's valuable enough that they could sell to pay off your creditors. Again, every state has exemptions. From what I've heard, most people don't lose anything in Ch. 7, but each situation is different. It just all depends on how much you and how much you own. When you file, you'll be appointed a trustee who will analyze what if anything you own can be sold to pay creditors. You should talk with an attorney who can help you to decide what's your best course of action.

You will lose anything you own that can be liquidated to satisfy your creditors, including personal property, right down to your bicycle. Also, you need not "fear" losing your borrowing power, bankruptcy will destroy it. The only other thing I can think of is that some prospective employers look at your credit rating to determine dependability and character. My advice to you is, resort to bankruptcy only when every other possible option has failed,

Your business is safe so long as it's Incorporated. Otherwise, any receivables and real property are in jeopardy.

If you mortgage your Land, they cannot take your personal property. But if your personal property is stuck in the ground (e.g. a mailbox) the bank CAN take it with your house

well when you have no way out its the best option

aSD