Why shouldn't I just declare bankruptcy?

Advantages - because of your financial inability, your total debt is discharged and you are liable to pay none of your creditors. There is no payment plan fixed in chapter 7 bankruptcy unlike a chapter 13.

Disadvantages - The negative mark comes in your credit report and it shows all that you were not able to pay off your debts. So, any future lender will be hesitant in opening new lines of credit for you. You will have to start the repair as early as possible and build up your credit history. Opening small accounts in your name and leaving a good and timely payment history will only do good to your credit history. I may have missed many points here and you should know them well. Please read the bankruptcy article at

http://www.debtconsolidationcare.com/avoid-bankruptcy.html