This is a possible alternative to bankruptcy. I am not giving anyone legal advice here, just mentioning that this is an option that some folks use, and you could ask an attorney about this to see what s/he thinks:
Alternatives to Chapter 7 Bankruptcy
Learn what you can do instead of filing for Chapter 7.
In some situations, filing for Chapter 7 bankruptcy is the only sensible remedy for debt problems. In many others, however, another course of action makes better sense. This section outlines your main alternatives.
Do Nothing
Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you're living simply, with little income and property, and look forward to a similar life in the future, you may be what's known as "judgment proof." This means that anyone who sues you and obtains a court judgment won't be able to collect simply because you don't have anything they can legally take. (As a famous song of the 1970s said, "freedom's just another word for nothing left to lose.") Remember, except in unusual situations (being a tax protester or willfully failing to pay child support) you can't be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, Social Security, unemployment or public assistance.
So, if you don't anticipate having a steady income or property a creditor could grab, bankruptcy is probably not necessary. Your creditors probably won't sue you, because it's unlikely they could collect the judgment. Instead, they'll simply write off your debt and treat it as a deductible business loss for income tax purposes. In several years, it will become legally uncollectible under state law (called the statute of limitations). And in seven years, it will come off your credit record.
http://bankruptcy.findlaw.com/articles/1613.htmlA public service from the Resistance Underground.;-)