Clients are gone, lots of debt, what would you do?
dotBen: Like others have said, I would contact the server company and do what you can to cease the contract.  I personally think the advice given of 'turning up in person and begging for mercy' is a little odd and I wouldn't do that. I'd call up, ask to speak to someone about renegotiating the contract (ie someone who can make the decision, not the sales rep) and explain the business has gone under and that you would rather conclude the relationship now rather than be in a position not to be able to pay and have to have them join your list of creditors.  That should pretty much do the trick.Now, the one problem with that is that it means the product you've built will no longer be running, which means you can't sell it.  However, I think it's a funny time right now for lead generation anyway and IMHO better to be out of the game for a little bit to see how things settle.In the meantime, I would weigh up your best opportunities between consulting and getting a job - what will make you the most money (to pay off the debt).  I'd also factor in what will keep you involved in the industry - ie might be better to go contract or a slightly lower paying job in lead generation/online advertising than to get a higher paying job selling insurance (just an example - point is it's something that doesn't move your career forward).I would look to pay off at least the minimum payments, just to stop the debt from increasing - but really you should try to pay what you can off per month.  The budgeting ideas are good.Finally, I would tinker on your project in your spare time - as long as you feel you are moving forward with it and creating value.  If it makes you feel miserable, which it might, I would leave it dormant.We really don't know where we are with the economy right now and so playing a safe game for the next 6 months is vital IMHO until we know what things really look like -- then we'll be able to see the opportunities and begin to capitalize on them.On a personal note, I just want to say I feel for you. I've never been in debt, but I've also never really embarked on a risk taking entrepreneurial venture like you did. I moved to Silicon Valley (from another country) to do it, and 2.5 years later I'm still scared to try it. Scared of the failure, especially economic.My point is you have tried it, you have learned a lot and you have the life experience which many don't.  I hope that simply empowers you to get back on your feet and try the next one.  I wish I wasn't as paralyzed as I am as my window of opportunity, age wise, is closing.Best of luck to you.