Filing for any type of bankruptcy, including corporate bankruptcy, should generally be considered an absolute last resort when a business is in financial trouble. Corporate bankruptcy is a way to alleviate the weight of the debts owed to creditors, but it generally involves either a lengthy and expensive restructuring of business finances (in the event of a Chapter 11 bankruptcy), or it involves selling business assets so that the creditors listed in the bankruptcy filing receive the balances they are owed (in a Chapter 7).
The purpose of a corporate bankruptcy is to repay the creditors (this excludes public or private shareholders, who are not considered creditors) that have funded the operation of your business.
Most businesses choose to file a Chapter 11 bankruptcy over a Chapter 7 bankruptcy, because by filing a Chapter 11 the business does not have to close. However, while a Chapter 11 can and does save many businesses and is thus a viable option if you hope to remain in operation, filing for Chapter 11 bankruptcy can be very expensive. There are myriad legal requirements that have to be met, including creating a plan with all creditors to renegotiate debt. A trustee will also be assigned and in many cases, the business owners lose a large degree of control over the financial operation of the business. Still, Chapter 11 is generally the best choice if the business could become profitable again once its debts are cleared.
However, in any case, a business or corporate bankruptcy filing is not generally going to relieve you of your responsibility to the IRS for payroll taxes, as most of these types of taxes are not dischargeable in bankruptcy proceedings.
If you have concerns about whether or not corporate bankruptcy is appropriate for you, it is in your best interest to consult a lawyer prior to taking any action. Your lawyer can help you determine whether or not a corporate bankruptcy will actually solve the particular financial problems plaguing your company.