Bankruptcy vs. Doing Nothing: A Scenario

[HHM]

I really see NO BENEFIT to the do nothing approach.

[Pizza]

The consequences are tied to the laws of your state, and whether or not you can pull off the 'judgment proof' tactic. A collection agency can find you and will then determine if there are assets within its reach. If there are none, some collections agencies give up on you. Note that if they do, you can receive 1099c's - taxes on the 'forgiven' debt. Also, the more creditors you have, the greater the chances that SOMEBODY will bite the bullet and sue.

[ryan]

Just thinking out loud.

Suppose you had a lot of defaulted CC debt and a mortgage that was in FC as well. In the coming months you would probably have to relocate, etc.

Assume you're self-employed, no family, largely untroubled by creditor calls,
and perhaps prepared to even live without bank accounts.

While strongly considering BK, is there any other option, (besides debt negotiation) that you'd consider? Which status would be worse, credit-wise?
A 'BK OR 'no BK', but a bunch of defaulted CC's/judgments and a FC mortgage?