Oh, and I'm in Missouri if the state makes a difference.

For bankruptcy, you file in federal court. You should file if you risk losing assets otherwise. It sounds as if you might be "judgment proof." In other words, if a judgment for payment were obtained, no assets would exist to collect. You would risk a garnishment on your wages only. That could be enough to want to get a clean start with bankruptcy. The remedy is open to anyone who owes more than they are worth. You can file. Then you can't file for another seven years. You should think about whether going to court after you file for bankruptcy would mean that an award would have been subsequent and you would owe. It sounds like you might not lose your case if the landlord wasn't damaged by your vacating your rental. You could wait and meanwhile you should consult an attorney in your area.

He can sue you all he likes, it does not mean he'll win and get a judgment for the debt he claims you owe him. Just respond to the suit bringing proof that you paid the rent while you were there and any proof that he subsequently rented it to someone else after you left. He can't collect rent from a new tenant and get bonus bucks from you for the same unit. Doesn't work that way.

Before you file anything, consult an attorney who specializes in bankruptcy to see if you meet the "means test" to be eligible. A chapter seven bankruptcy wipes out all debts up to ninety days prior to the filing date. As for the breach of contract, you'll have to prove someone took over the lease you signed. An oral agreement is hard to prove even in small claims court but if you show someone else took over the lease, his case gets blown out. In Missouri small claims court, punitive damages are not awarded just compensatory, aka actual losses.

Your attorney may want to file a counterclaim for you before you go to small claims court or district court, which usually stops landlords dead in their tracks if they are asking for punitive money. I suggest you read the following link to understand your rights in a bankruptcy proceeding.
http://www.ehow.com/about_5125688_bankruptcy-laws- missouri.html

These are all great answers so far. Thank you. I'm a lot less stressed now.

A bankruptcy filing creates an automatic stay that prevents creditors from continuing state court lawsuits. The automatic stay is found in Section 362 of the Bankruptcy Code. If you were to file a Chapter 7 bankruptcy and receive a discharge in bankruptcy - meaning that you have successfully met all of the requirements of a debtor in bankruptcy - then the $10,000 debt would be wiped out forever.

Thanks. All of the answers were great, but I found this one the most helpful. There was only one thing I didn't understand: if I file for bankruptcy today, and my court date is next week, does that mean I don't go to court anymore?

Once the bankruptcy case is filed the state court case must come to a complete stop. Send a copy of the bankruptcy filing to the state court and the plaintiff's lawyer. Cite to the automatic stay of Section 362 of the Bankruptcy Code. Normally, your bankruptcy lawyer would be the one sending the notice on your behalf.

Oh wow. Thank you! You have been very helpful. I'm not sure if you joined WebAnswers to earn some extra cash, but there are a lot of legal questions on here that you can probably answer. I figured I'd give you a heads up since I see that you're new.