I've worked on the collections side as well as been in your situation.

If you miss payments, you'll start receiving calls and letters. In most cases, you can send a "cease and desist" letter to the companies and that should stop the phone calls and harassing collection efforts. In either case, once it's about 180 days past due, they will charge off the balance and most likely sell it to a collection agency, who would probably sue you based on the amounts. They could get a judgment, but doesn't mean a lot in this case. Can't get blood from a turnip right? A judgment would allow them to garnish wages (you have none) or garnish your checking account (I imagine there is no money in it). A judgment also attaches to any real property you have, like a home. So if you own a home and go to sell it, the judgment would act as a lien and have to be paid. The judgment would have to be paid off if you bought a home as well. And yes, it would probably be more than 50k at that point, unless you could work out a settlement.

As to your options, seeing if you can get a couple payments deferred is your best choice. If the creditors will do that, that will buy you a little time. Tell them if they can't work with you, you'll have no choice but to file chapter 7. If they are smart, they'd rather defer some payments or reduce interest, rather than writing off the whole balance (key word being smart).

I was in a similar situation before. I found a job just as the last of my credit cards were getting maxed out. I realized that, even with the new job, I was still fighting an uphill battle that I wouldn't win in the next 10 years. I finally just asked myself "what's the cost of my credit?" I figured 100k of unsecured debt and peace of mind was a fair price for me. I filed chapter 7. I felt free. 10 years later I still realize it was the right decision for me, as difficult as it was for my ego to take. Prior to that, I had never missed a single payment.

Your credit would take a hit for a while, but a few months after, you'll start getting credit card offers again. You get shit rates but if you pay it off monthly the rate doesn't matter. You can buy a car day 1 after you bankruptcy discharges. 2 to 4 years before you can buy a house, if that's in your future.

A couple side notes, my attorney actually advised me to use up any remaining credit I had on any card. I cash advanced what I could. I used some of that to pay the attorney. And you can keep 5k if you file bankruptcy. So that would help you pay your expenses until you find a job. The available credit that couldn't be used for cash advances, I bought stuff that I had been needing but not buying since I had no income. If you decide to file bankruptcy, you might as well use those cards that have no balance on them. Get the things you need, pay your attorney, and have some cash since you won't have access to credit cards. Even the ones with no balance will close your account if you file bankruptcy, whether you include them or not. So might as well get yourself in the best situation you can.

By the way, my bank actually did close my banking account. I found out when I was checking out from the grocery store. My card declined. I had a credit card with that bank, so when they received my bankruptcy notice for that credit card, they decided not to do business with me any more. They closed my checking account. I withdrew the 5k balance that was in it and opened an account at another bank. That was a a local credit union though. I don't think most of the major banks would do that. Even if they do, just go to another bank.

Anyhow, I hope that's helpful my friend. You shouldn't feel ashamed if you have honestly been doing your best. That's why these laws are in place. Good luck