Is Bankruptcy the best option for someone like me who's unemployed?

If you have no income (other than unemployment), no assets and it has sounded like you have reduced your costs of living to the point where the next step would be living on a park bench, you may indeed have no other choice but to file for bankruptcy. Unfortunately, filing for bankruptcy costs money - it costs money in attorney fees and court costs, but this sounds very likely that it might be your only option. If you don't have money to sufficiently feed your self without paying those bills, then paying for credit counseling and starting to pay off the creditors is just going to literally take more food out of your mouth.

Give your creditors one more chance. Let them know that if they do not work with you, you will file for bankruptcy and they will receive nothing, as you have no assets. If they don't work with you, then start looking around for the least expensive lawyer that will file a bankruptcy for you. Discuss the matter with him (they will usually give you a free consultation), and he will be able to effectively advise you on the bankruptcy process.

The site that Judy recommended appears to be a legitimate self-regulatory agency for credit counselors and can get you in touch with a free/low-cost credit counselor in your area who may be able to help - even if that help is nothing more than referring you to a low-cost bankruptcy attorney or programs for legal services for low income individuals.

Good luck, and I hope things turn around for you.

You should visit SAVEHUNTER.NET- I am sure here you can find the best option for you

RE Is Bankruptcy the best option for someone like me who's unemployed?

Long story short, I've been laid off twice within the past 2 1/2 years and have been completely unemployed for the past year. I even lost out on $4K because the last company who laid me off decided to file for bankruptcy instead of paying its employees their 2 months worth of severance pay.

I've had about $4K in medical bills build up since then, my car was repossessed and I still owe the remaining $3K balance plus whatever fees they've tacked on, plus two $300 balance credit cards I could no longer pay in which the amounts I owe have quadrupled due to non-payment.

Since I've been unemployed, I've moved to another city with cheaper rent and got a roommate, so I can't really see how much more I can reduce my cost of living. Fortunately my cable and internet are free, but sometimes I still find myself having to go a day or two without something to eat. I guess that's not too big a deal as I'm not starving to death, but it's scaring me because it's an indication that I'm not doing very well financially.

My debtors REFUSE to work with me because I'm unemployed. Every single credit counseling service I've called told me that I had to pay at least $450 a month to repay these debts which is something I can't do with my unemployment checks right now. And who knows if I'll be able to pay that when I get a job?

I know that my debtors will be lining up to garnish my wages AS SOON AS I start working, and if that happens then I'm pretty sure that I won't even have enough money left over to cover my half of the rent.

I'm really scared about my future and I think that the best thing for me to do is throw my hands in the air and file for bankruptcy.

Any help or suggestions?

I just don't know what to do!

It does not sound like you have 10K in debt and generally you can't file for less than that. Creditors can only garnish a percentage of our wages and only one at a time can garnish you. The good news is you can't get blood out of a turnip. Meaning they can harass you but if you don't have any money they can't make you pay.

Also both bankruptcy and debt settlement companies want up front money so unless you can borrow from a relative you are stuck.

put all your efforts into finding a good job. for some other ideas read my blog: http://creditdebt1.com/blog

I wouldn't automatically file bankruptcy unless you have a professional evaluate your financial circumstances. You might want to try a consumer credit counseling service. They are free and they can help negotiate with your lenders to reduce your payments, reduce your interest, and maybe even get some debt forgiven. Once they evaluate your situation, they might recommend bankruptcy.

Just Google "Consumer Credit Counseling" and your city name. That should give you a list of services in your area. Here's one website that you can start on: http://www.cccsstl.org/landing_page_baby.asp?gclid...

Look outside your immediate area, and use public transportation to get there.

You could always offer to babysit, paint some houses for people, perform yard work for money, etc.

It sounds like you have $7,700 in debt. That really isn't that much (although I'm sure that late fees, etc will add up quickly). Contact the company that Judy mentioned so that they'll limit the fees and interest you'll build up.

I am EXTREMELY dissapointed that no one told you about the ONLY goverment approved program to help you.

National Foundaton for Consumer Councelling

NFCC.org

This is a non-profit agency that will help you at NO cost.

Google the site and call their 800 number - make an appointment at a local office.

Ask any expert here - they WILL HELP you.

Hope another expert backs up what I just said.

If they put you on a DMP program - max cost is $25 a month - but only if you can afford it.

With the Debt Management Program they will contact your creditors and set up small payments, hold payments, reduce interest, anything they can do - they will do it.

They have power with the credit card companies.

If bankruptcy is your only option - they will be honest and tell you.

Reviews call them angels.

/

these are not the best of times and almost everybody has suffered some type financial crisis.in these goofy times one must swallow their pride and get whatever they can.this is survival of the fittest,and i do believe you are in california which seems to be going under right now.several part time jobs are just as a full time job.i travel about 55 miles to and from to earn money.its not gonna get any better,if you declare bank bankruptcy its only gonna get worse.i would make it my choice.go east,houston,atlanta and other rapidly growing areas where jobs are plentiful.look into human resources , people will always be needed to take care of other people.