Is filing bankruptcy ethically and socially responsible?

Bankruptcy Ethics and Responsibility

Entrepreneurs should always be aware that their new venture has certain risks. Whether they be financial, market, or organizational risks, they are risks just the same. Even though an entrepreneur is mindful that the venture could fail, it is necessary to develop a plan for a possible collapse.

Is filing bankruptcy ethically and socially responsible? If so, under what conditions? Please give examples. What would you do if you saw your business on the verge of collapse?