A great deal of research by legal studies scholars pertains to employment law, international law, and corporate governance, as well as other fields including ethics and international law. The fields typically addressed are very important and rightfully receive considerable attention in the scholarship and textbooks. However, bankruptcy as a learning tool is greatly underutilized. This observation is particularly true considering today's global economic climate, with so many high-profile bankruptcy cases in recent years, such as Enron, Worldcom, and Lehman Brothers, and the ever-increasing incidence of consumer bankruptcy. This article attempts to partially fill the void in the legal studies literature by presenting a hypothetical case study of an individual who is in financial distress and who is presented with the decision of whether or not to file for bankruptcy protection. The case provides an opportunity to explore the ethical ramifications of the decision. The case is not designed to teach the finer points of bankruptcy law, which would be of little long-term value to the typical business student. Following this introduction, Part II presents a brief literature review of the case study as a pedagogical tool. Part III provides a concise overview of consumer bankruptcy law in the United States, and Part IV discusses ethical theories that may be relevant in the bankruptcy decision-making process. Both sections are designed to provide a foundation for the case study presented in Part V. Following the case study is a teaching note that includes the following: learning objectives, potential uses of the case study, a discussion of the assigned case questions, and suggested approaches to evaluating students. Finally, the conclusion provides anecdotal information on the use of the case study. (Contains 174 footnotes and 1 figure.)