Bankruptcy or do nothing?

[poedarwin]

Regretably I've dug myself in a hole and had a hard divorce, moved to the opposite side of the US and now I'm a single mom having trouble keeping up with my credit card payments. I've read that if you don't pay off debt after several years the creditors can't collect & in 7 years it gets taken off your credit report. I was considering filing chapter 7, but I'm also considering doing nothing. My concern is can the credit card companies garnish from my paycheck if I do nothing? Also if I'm paying for a vehicle loan can credit card companies take my vehcile from me?

[Christina D]

you should just try one of those company's that consolidates all your debt so u have one monthly fee.. That may help

[steve.c_50]

The only way they could get a garnishment and/or take your car is if they sued you and got a judgment. They may or may not sue...there seems to be no rhyme or reason they do or don't. Truthfully, if there are several.. a chapter 7 will do the least damage to your credit in the next several years. Been there done that one..paying them off and "doing the right thing" is not necessarily the right thing to do.

[rm0475]

Bankruptcy is almost always a bad idea. Avoid it if at all possible. It does not forgive all debts. Everything, except your home, can still be repossessed, including your car. Also, the creditor can still petition the courts to re-cope a percentage of what you owe.Furthermore, you will not be able to buy anything on credit for 7 years. You must completely change the way you think about money. Cut up your credit cards and swear off ever borrowing money again. Sit down and do a budget and pay your lowest debts off first, regardless of interest rate.I am sorry that you are going through this. If you can gain control of your current situation, you will be better off mentally and financially.