I had a similar experience with my two dogs. They love to play fight, and somehow one of their mouths got stuck in the others collar. Trying to get free they twisted it even more. The buckle would not unlatch! One was being suffocated; the other was bleeding from his mouth.
I'm sure it all happened over a few seconds, but it seemed like forever. I ended up have to pick one of the dogs up in the air and twist him to loosen the collar. I'll never forget the dogs yelping in pain as i was trying to get them undone.
The collars immediately went into the trash and i ordered break-away collars that evening. The dogs are also micro-chipped.
I've read several comments about the down side of the chips. I live in Georgia and I've never had a problem here. All of the animal control officers carry readers that scan all three brands. The local vets also have them. When ever i pick up a stray, i just bring them to the closest vet and have them scanned for a micro chip. I also have the vet scan my dogs when they are in for their yearly checkup.
It's better to be safe than sorry. Microchips cost about $25, that's worth it for the chance to get your dog back.