Bankruptcy is difficult. When I was a kid my dad had to claim it, and we lost our home. He had to claim it again many years later. However, it allows you to get a "fresh start" of sorts, and it is necessary sometimes.

That being said, I have no idea how the law works but it sounds shady and possibly illegal to take out tons of loans and cash advances and immediately claim bankruptcy in order to cover them. Surely doing something like that is not allowed?