Last October I left a comfy job at a marketing startup that had become very profitable (Inc 500, NY Times articles, and all that jazz). I had stopped taking classes full time to work with this company, so I never completed my CS degree. After leaving my job, I started my own company to develop some consumer site ideas. My partner bailed early to go to law school, so there was a bit of a gray cloud overhead from the start.

In order to get money coming in I began running lead generation and online marketing for a few clients. Over time, that grew to consume my entire working hours. It peaked at about $70k in revenue in July and has been steadily declining from there to a low of $15k in November, thanks to the economy and increased online ad competition.

On Monday of this week, without warning, my last two clients pulled the plug due to economic conditions. The deals were profitable, but they had too many account defaults. One client has seen his annual bad debts total double in November. So, to free up cash flow, they cut me loose.

I poured my entire savings into the company and had up to $50k in credit card debt at one point. Running online campaigns and lead generation, you pay for ads up front and invoice in arrears.

As the company made profits, I paid myself as little as possible to cover my bills. The rest was used to pay down debt. Early on, I tried doing contract work on the side to pay my personal bills. This worked until I was stiffed on a large project. Since the business was making money by this point, I focused on it full time.

As it stands, the company has about $13k in credit card debts. I have an additional $17k in personal credit card debt from living off of credit before the company was profitable.

The corporation is getting one last $6k check. There are no finished products to show for the last year, no remaining savings, an incomplete CS degree, and $30k in debt between the company and myself. The corporation also has contracts to keep its rack space until the end of January at a cost of $600/month.

I just sold my old (expensive) car and got a Toyota. I am vacating my apartment and bumming with parents and friends.

The corporation has an internal advertising and lead management system that I am tempted to lease to customers. There was talk with some local Austin marketing guys of launching that as a product a few months back, but it never worked out. There are currently four servers sitting idle that could be put to use. There are also three consumer sites in various stages of completion.

If you were in this situation, what would you do? Dissolve the company, get a job, and move on? Go back to school? Launch the advertising product? Launch the consumer products while bumming around to avoid rent? A combination of the above?

Has anyone been in a similar situation? I am seriously stressed out and likely not thinking clearly, so I would love an outside perspective.