Bankruptcy vs. defaulting on unsecured credit

If you file bankruptcy before the debt becomes delinquent, your credit rating would take a small hit and then recover over the next one to two years.

If you wait, your score will drop substantially. It would still recover when you later file a bankruptcy, but it would be at a lower rate.

If you default without filing, the creditor has up to 6 years after the loan is accelerated to file a law suit against you and obtain a judgment. A judgment in the state of Washington is good for 10 years and renewable for another 10. The judgment would entitle your creditor to seize bank accounts, portions of your pay, and it would likely act as a lien against any real property that you may acquire.

If it were me and I owed that much, I would file and put it behind me as soon as possible.

I agree with Mr. McClure's advice

LEGAL DISCLAIMER
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

Sometimes getting it behind you is the best idea. Alot depends on your whole situation.
My best advice to you is to seek the advice of a competent bankruptcy lawyer. Most bankruptcy lawyers offer a first visit free consultation. Make sure that you select an attorney that has been practicing law for a considerable period of time and who's emphasis is on bankruptcy law. When you call to make an appointment be sure to find out what documents you should bring to your meeting in order to get the maximum benefit from your free consultation.