Quoted from MrBally:
Keep in mind that when something is written off, you get a W2-C. Then you pay income tax on every dollar written off.
That doesn't apply to Chapter 7 or Chapter 11 bankruptcy.
It also does not apply to any type of "unsecured" debt - credits cards being the major type of unsecured debt most people hold.
However, you *will* get a W2-C for any debt that is secured - usually this applies to real property (real estate) - in the event of a write down/write off, forgiveness of a portion of the debt or whatever in the event of a short sale.
As for the OP... BK is the correct choice in this matter... There are lots of forums dedicated to bankruptcy discussions and I am sure there will be some recommendations for you for representation. Don't just go through the yellow pages. This is really important and complicated. If it gets screwed up YOU are the one paying the consequences. So do your due diligence in finding representation.