Personal bankruptcy could be an option if debt is overwhelming you. It could have some effect on your professional life as well. 

Every case is different, so the exact consequences of bankruptcy could differ depending on your situation. However, one of the main factors would probably be your employment status. It could matter whether you are an employee, the owner of the corporation or a sole proprietor. 

For sole proprietorships 

As explained on by the IRS, sole proprietors are people who own unincorporated businesses. For most tax, debt and financial purposes, this means that the person and the company are legally the same — there is no separate legal body for the business. Therefore, you could potentially meet Chapter 7 liquidation bankruptcy requirements by using business assets. 

If you were a sole proprietor, you also could potentially file for other types of bankruptcy. For example, you could file under Chapter 13 and create a repayment plan that allows you to maintain operations for your business while paying back your personal and professional creditors in a manageable way. 

For corporate owners 

The process could be different if you own corporations or limited liability corporations that you have elected to treat as separate entities. In general, your business assets and your own personal finances would have a greater degree of separation in these cases than they would if you were sole proprietor. 

For employees 

If you are an employee, or if you are unemployed without ownership interests in a business, personal bankruptcy should not significantly affect your professional life. In fact, especially in cases of Chapter 13 payment-plan filings, the court would probably assume that your career would proceed as normal. 

Specifically, these payment plans have a basis in your income. The court designs them specifically for your situation, so you can maintain a reasonable quality of life while resolving your overwhelming debt.