According to the American Bankruptcy Institute, while bankruptcy filings cooled in November, consumers are still feeling the effects of rising unemployment rates and housing debt.  Bankruptcies are set to top 1.4 million filings for 2009 as consumers and businesses continue to seek shelter from economic distress.

With the 2005 changes to the Federal Bankruptcy Code, the law makes it more difficult for debtors to get a "fresh start" through bankruptcy.  This fact, coupled with the stigma associated with bankruptcy, not to mention the negative impact on one's credit report, leads many debtors to avoid bankruptcy at all costs.

All Americans, however, have a right to file bankruptcy.  Article I, Section 8 of the United States Constition states:

The Congress shall have power ...

To establish ... uniform laws on the subject of bankruptcies throughout the United States

Moreover, after a couple of years, a debtor usually can rebuild their credit score by incurring and paying off new debts (e.g., obtaining new credit cards, using them, and making regular payments).

So, you shouldn't worry about the stigma of filing bankruptcy.  There are many, many people who are in the same boat as you.