While we try to avoid financial ruin, it’s inevitable that some of us will face it at some point.

Maybe it’s a failed business with a ton of debt, or maybe you paid rent via a credit card, or maybe…fill in the blank.

You will be generally offered two choices — Chapter 11 or Chapter 7.

Chapter 11 means that you plan to continue your employment (or business) while faced with financial failure. This might mean you negotiate debts with your debtors, but still plan to pay it back (but maybe not all of it).

Chapter 7 is much more drastic. It means that you’re going to give up. You need a clean slate — a new start.

Bankruptcy is a drastic last ditch effort. It’s not fun. And it is painful. But do remember that it is an option in your arsenal.

Maybe you’ll discover that it’s exactly what you needed to keep going.