Clients are gone, lots of debt, what would you do?
jamess: There are things you should do right now to deal with the debt. First off, the rack space contract. You can almost certainly get out of it by phoning the company and explaining that the choice isn't between cancelling the contract now or getting paid for another two months, but rather cancelling the contract now or fighting other creditors over the non-existent assets of the company at liquidation. As long as you can talk to a real human being who is authorised to make a decision, then that one is a no brainer for them.Secondly, I think you'll probably find that declaring the company bankrupt won't free you from liability for most of the debt it owes. You should try your hardest to deal with both the corporate and personal debt through some route other than bankruptcy. It isn't a totally unmanageable sum, but it could quickly get that way since we're talking about credit cards here.I guess your best bet is to look for a full time job as soon as possible. In the mean time, phone your creditors and explain the situation. If they're nice you'll probably be able to organise some form of payment holiday until you're earning again, with a more reasonable rate of interest. With the current economic climate, my guess is lenders are just happy if their customers intend to pay back what they owe, and they'll bend over backwards to help you.Anyway, sorry to hear about your situation. Its a tough break becoming victim to the economy through no fault of your own. Hope some of this helps.