is it time to file?

IMO...I would not file for $15K in debt...try to set a payment arrangement with the CA & lawyers...settle for less.

IMPORTANT NOTE - If you file a Chapter 7 NOW, you won't be able to file a Chapter 7 again for 8 years...just thought I'd point that out...BTW...a Chapter 7 lawyer will ask for over $1,000 in attorney fees before filing...

Well I don't plan on using credit cards again in the future until i have a steady enough bank account to keep up with payments. And I do understand that credit is very important for my future. I am just worried about any sort of lawsuit coming my way. I really don't have any money, period, and no one to help me out. I have been moving so I don't have a steady address and I don't want to not appear for a court date if it comes to that. On that note, will I be issued a bench warrant if I do not appear? Very unsure how this all works.

Most attorneys offer free consultations - I would take advantage of it to see if you would qualify for chapter 7 etc. They should be able to answer that last question too. And it is possible for an attorney to take your case pro bono.


http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html
If the debtor's income is less than 150% of the poverty level (as defined in the Bankruptcy Code), and the debtor is unable to pay the chapter 7 fees even in installments, the court may waive the requirement that the fees be paid. 28 U.S.C. ?? 1930(f).

Have you tried a credit counseling agency? You will need to do this before you file BK anyway...so give them a call and see what they have to say.

I STILL believe that you can probably settle these accounts without having to file BK. It's probably gonna cost you $1,500 to $2,000 to completely file BK...with a little more $ you can settle and be on your way to credit recovery. Trust me...if you file BK now and in 5 years you are in trouble again, you will not be able to file a Chapter 7.

If you talk with a BK attorney, he/she will talk you into filing BK b/c they make their $ only when people file...just make sure you do your homework and know that the decision you are making is your decision and the best one for you.

Good Luck!

This is the general standard used to decide if you should declare bankruptcy - look at your debts, look at the current interest rates, look at your income - and then ask yourself: Will I be able to pay off this debt completely in 3 years?

If the answer is 'no', and in your case, it seems like it would be, then declare bankruptcy. Debt settlement is tricky. You are liable to 'settle' the debt and then have another collection agency come after you later on for the same debt! It happens all the time.

Bankruptcy is not the end of the world. It exists for a reason - to give people like you a fresh start. You will be eligible for a mortgage and a car loan at a decent rate in a couple of years.

If you don't declare, what will your credit look like in three years? Delinquent bills, judgments, lawsuits, possible garnishments.

I know this is a debt consolidation website, and I'm not knocking that option for some people, but in your case, be realistic and declare bankruptcy.

This is my personal experience. I struggled with debts - tried negotiation and consolidation and went to cccs agencies. Still couldn't get ahead. Kept struggling. My life was miserable. No light at the end of the tunnel. Then I had to get a security clearance for my job. I was denied. Too many unresolved bills. A co-worker who had declared bankruptcy the year before received her clearance. Why? Her bills were resolved.

Don't be an idiot like me.
-Anna

Many people turn to BK as a first resort...make sure you have checked all your options before filing for BK...BK should be the LAST resort.

Too many people are quick to file, only to discover a few years later, they are in the same spot...only this time they can't file Chap 7 and have to file Chap 13...Chap 13 is a repayment plan for BK.

Your finances are your personal decision. Check all your options and then decide. Only YOU can make the choice of what is best for you.

Good Luck.

Good advice sanity! You do need to consider all your options and BK should be a last resort.
For me, hubby got hurt & has been out of work since Sept 08 - we are drowning. We tried to settle our debts on our own & most lenders have been more than willing to work with us. However, there are a couple that have not & now have judgments against us. Our finances were in a mess before he got hurt but now it's really bad - we are suffering from many bad decisions.

I personally feel good about our decision to do BK - I know the effects it will have on our credit & I do feel guilty for not repaying all of our debts - but I feel like there is finally a light at the end of the tunnel & that we will be okay. Things were in such bad shape it was not only effecting our finances but our health with all the anxiety & sleepless nights!

We aren't filing until 6/30 but I'm learning as much as I can now to make sure we do not end up like this again. We are tracking our expenses to create a budget, checking our options on how to save & invest and I will make sure we are prepared for lifes bumps and bruises in the future so we don't get in this mess again!

As far as toolong's post - sanity is exactly right - your finances are your personal decision. Whats right for one person may not be for another - there is lots of good advice on this board to help you along. Best of luck!!