Cant pay any of my debts

Filing for bankruptcy is also a costly affair. You have to spend $300 just to file the papers in Chapter 7. Other than that, the lawyer's fees vary from $1000 - $2000. Most lawyers will give you a free initial consultation.

According to the new laws under bankruptcy, credit counseling is a must. One has to go through the means test and know if s/he qualifies before the debts are discharged.

I just filed for bankruptcy in August of 2006 and it cost me a total of $1,379.00. $1,299 went to my attorney and that included the filing fee and $50 went towards the credit counseling that you must take before filing and $30 went towards the class you have to take prior to getting the discharge. My first consultation with my attorney was free and he allowed me to make payments to my account even after he filed it for me. Most lawyers will require you to pay the full amount before they file.

The lawyer will help you advise if it's a good option and also the credit counselor will advise you in the decision as well.

I did my whole bankruptcy through a paralegal and it cost about $500. I know that there is a minimum amount of debt (in California, I think it had to be either 5 or 10 thousand). There is also a forum on this board that is devoted just to bankruptcy. Check it out.

Have you considered debt consolidation first? A bankruptcy is a kind of last resort as it is so costly and life changing.

Bankruptcy makes credit counseling mandatory according to the new laws in effect from 17th Oct last year.

Weigh your other available options. If you find tough paying the debts within three years on the present terms, contact any credit counselor for preparing a budget and negotiate a repayment plan. They will be able to include a reduced or in certain cases zero interest rate on the existing debts. Usually, few creditors are not very comfortable dealing with debt consolidators, but if there is no other option of recovering the money, they will have no choice but to deal with them and hence your account won't even go to collections.

Do the homework from your side. Create a budget for your realistic, monthly expenses on the basis of your current living. Include all the important payments like your mortgage, car etc. Use the portion you save after excluding all the expenses and this will go towards your credit counseling program. Your debts will get paid and you won't consider the need to file for bankruptcy.

There are some more avenues where you need to give a thought. Increase your income, reduce your expenses, negotiate the existing interest rates or lastly sell asset to bring the situation under control.

Beauty, aren't you a collector?

Yes, the same one who seems to be mad at everyone.