Sometimes a perfect storm of financially bad luck hit and that's the only option at the time. Declaring bankruptcy. But it seems to me if you look at it as a TEMPORARY situation and pay back everything you owe with interest if you can that would show you are a person of good character and can be trusted to fulfill your obligations. At least that is how I'd look at it. I'd be happy to approve a loan for such a person with such a background. Betting on good character is usually a sure thing.
