Declaring bankruptcy now can get you started sooner on rebuilding your credit, and you can always get a Chapter 13 plan if there is another disaster before you are entitled to file again. Bankruptcy will not get rid of your student loan debt. Nothing will get rid of student loan debt, and at least bankruptcy will prevent your lenders from aggressive collection action. You will lose all your credit cards. Also, it may be possible to salvage one or two if your lawyer recommends it.
Bankruptcy is an admission of defeat.
Bankruptcy is facing reality, and it can also allow you to have a new start. Bankruptcy is an embarrassment. Harassing phone calls from creditors, dunning letters, repossessions, cancelled credit cards and declined charge authorizations, and lawsuits are all embarrassing. Your name will be in the paper and in court records once you file. Your name will also certainly be in court records, and may be in the papers, if you are sued to collect a debt.