Reapplying for a PhD position at another institute after failing the qualifying exam It's embarassing, I failed my quals (in PhD ECE). The school is going to give me a terminal masters (w.o. thesis). My gpa is also not that stellar (3.4+), from a mediocre school. But I have a strong will to do a PhD (I enjoy doing research). 

My supervisor (along with other co-authors) are supportive in the sense that they are willing to write good letters (i.e. I have a quite decent publication record). So, I am planning to apply this year, my specific queries are -- 


Is it really worth a shot? as I have a "bad record" now (although my transcript will not convey such information, but I am not willing to hide it either) 
If no.1 is "yes", then how should I justify this to the adcom ? For example, explaining my financial and family problems that I faced during my last years (probably in the SOP)?
Is it possible to go to a better school/lab compared to my current one ? 


Some particulars:


I am an international grad student in the US.
I have a 3.8+ undergrad score from south-east asia (used to be a class topper, if that helps)
My GRE was also decent.
You can't let one setback keep you from pursuing your goals or dreams. Yes, it's bad that you failed your quals, but that doesn't mean you should just give up. Having supportive committee members will help a lot when applying to other schools or programs.