My question involves bankruptcy in the state of: Massachusettes

All my job hopes have been dashed in recent months and I still owe a large amount of money to 5 banks (10 credit cards). In the last 7 months I made every effort to limit all my expenses (sent my family to my native country) and now I am staying in a relative's house, with an intention of paying down my debt while I was looking for a job, which I felt was very close, as I have two Masters degrees and ten years solid experience. But fate has not been kind to me. So, now, I am running out of money, have to file bk. I have no assets at all, and have few thousand dollars for living expenses. My questions to you are:
1. I returned $20k+ to my close relative, who had asked me to trade US equities in my brokerage account, in the month of Feb, 2011. Markets were too volatile and I had a huge loss, which forced me to return his money. Will the court ask my relative to cough up the money to pay the general creditor?

2. I borrowed twice in the last 10 months (direct deposit to my chk acct) using my credit line from one bank and used it to continue to pay other creditors. My only intention was to avoid default, as I had interviews lined up and I was sure of paying off the debt once I had the job. I did not borrow for any personal expense. My only intention all along has been to pay off these banks somehow and rebuild my life and get my family back. Will these transactions pose problem during ch 7 bk filing?

FYI, I plan on getting an attorney to file the bk. If these transactions are a problem, what are my options? I neither have money nor do I have a job or an asset to liquidate. Is default my only option then? Is my American dream over? BTW, all my debt is unsecured credit card loans.