Title is not yet clear on a home planning to purchase

[Nicole Flakes]

I am currently negotiating a contract for purchase.  I was told by the title company that the title is not yet clear BUT that they are working on it.  I'm now 100% sure of the situation causing the cloud on the title, but I believe that it has to do with a past bankruptcy that the current owner filed for in his/her past. 

My question is, even if they are able to get this defect cleared up do you think that I should simply stay away from this contract and move on to something less troublesome?

Any thoughts or experiences are appreciated.