What would you do?

First, I don't have any credit card debt. I paid off those debts years ago and just never applied for new ones. The debts that I am in collections for are as follows:

Dental (root canal): $800
Dental (cleaning/filling):$240
Medical (my daughter didn't have insurance for an ER visit): $2100
Car Repo: $3000
Disney: $50
Cable Bill: $120
Verizon: $500
AT&T: $500
Gas Company: $200
Magazine: $30
Salle Mae: $12000
I think there may be one or two more that are around $100-200.

Right now, I make about $45,000. I'm a single parent and don't get any gov't help. I'm basically pay check to pay check b/c I don't budget all that well. Should I file for bankrupsy or just suck it up and dig myself out? Will take a long time though. Which is faster towards improving my credit?

Hi Goodone,

It will be better if you could check out the options of debt consolidation or debt settlement before you file bankruptcy. The options of debt consolidation or settlement will help you in getting rid of your unsecured debts. As far as your student loan (Sallie Mae) is concerned, it will be better if you could directly negotiate with them and try to get a repayment plan to pay it off. Not all debt relief companies will be able to help you in consolidating or settling the student loans.

If these options don't work for you, then you can contact your bankruptcy attorney and file it. However, you should remember that bankruptcy will help you in getting rid of your unsecured debts but you won't get a discharge from your student loan.

Take care

Student loans cannot be included in any debt management program.
What type of loans are they?? Federal or private??

Most of your debt is small...IMHO it would be as waste of money to pay for a debt management or debt settlment program. I would suggest starting with your smallest debt...call them and settle with them. Work your way up the debt chain.

In terms of affording to do this, you make half decent money. You need to set up a budget and stick with it.

I agree with the other posters. Bk does not appear to be an answer since you would be discharging less than $8,000.00 of debt. Settlement or some sort of debt managment program for the debts (other than student loans) is in order. As to the student loans, if they are federal, look at either the Income Based Repayment Plan or the Income Contingent Repayment Plan offered by the USDE

For the IBRP go here:

http://studentaid.ed.gov/students/at...3109_FINAL.pdf

For a general over-view of all plans for federal loans go here:

http://studentaid.ed.gov/PORTALSWebA...rmsOfRepay.jsp

There is a ton of stuff on the Net that discusses the differences between the plans. Do some research to see which plan fits your needs.

Des.