Sorry, Blue. It's a lot to deal with, but you can get through it. I would recommend that, first of all, you get financial counseling. (The new laws actually require that.) Just make sure you do not get it from a place that makes money doing it. There are non-profit agencies that are good to go to who will steer you straight. I wish I had a link for you. If I find one, I'll share it here. Years ago, I went for counseling and it was the counselor who urged me to file for bankruptcy. I ended up doing it by myself, without the help of a lawyer. It's mainly a matter of meticulously filling out tedious forms. But I didn't have a business, so yours might involve things I don't understand. (Mine was strictly uncollateralized consumer debt.) Having no assets can actually be a reason for you to feel a bit more relaxed. You have nothing to protect.

I just saw something above referencing Canada. If that's where you are, then I hope more fellow Canadians will respond. I'm in the USA, so the laws could be different. Probably a lot of the big principles are the same. Down here there is a statute of limitations (different for every state) that tells how long before debts become uncollectable. Where I live, it is about 4 years. Be careful about what you say to any creditors who call you. Don't agree to even try to repay, if you expect you will be unable to do so. Making a new agreement about a plan to pay them can push that statute of limitations date further into the future. Sometimes, the most straightforward thing to do is just to default and let the time run out that makes your debts uncollectible. Again, your situation is more complicated by having a business. Down here, you can stop the phone calls from creditors just by writing them a letter saying that you forbid them to telephone you any longer. It's a request to "Cease and desist." Of course they can still write to you, and they can still sue you. The judge can rule in their favor, even if you have no assets. That might be a good reason to pursue bankruptcy. Once you lose a lawsuit, the debt might not be dischargeable in bankruptcy. (I don't know.)

It sounds like a hard time in your life. Still, the day will come when it will be behind you. In the meantime, you and the kids have to eat. If you manage that from one day to the next, then give yourself a pat on the back.