Bankruptcy

“The worst bankruptcy in the world is the person who has lost his enthusiasm”- H. W. Arnold

I recommend the Consumerist article, Bankruptcy Is A Last Resort.

Bankruptcy is not a get out of jail free card for your debts, it's a nuclear weapon. If you use it, expect to be considered credit unworthy for a decade [because] bankruptcy is recorded on your credit report for ten years. …

There are two types of personal bankruptcy - Chapter 7 and Chapter 13. Chapter 7 is total liquidation where all of your possessions are sold to help pay off the debt. Chapter 13 is known as the "wage earner's plan" and is used to help restructure the debts so that the debtor can work towards paying them off over the course of several years.

Bottom Line

For the ten years after bankruptcy it won’t be impossible to get a loan but it will be difficult. Rates will be higher on home and car loans because you are a “risk”.
And though it is illegal, you may find landlords rejecting your apartment application and companies that are reluctant to hire you.