Expert: Terry Leeders - 10/15/2009

Question
I'm not sure what else I can do. I have a creditor mailing me every week telling me if I don't pay them in full within 5 days they're going to take legal action. This credit card is 7 years old. I made the bill when I was 18 years old, making 400 dollars a week. I'm not 25 years old, working part time (I've been laid off twice now and haven't been able to find a full time job), and I barely make 400 dollars a month.

I'm very emotionally strained and stressed out over this whole situation. I keep thinking I'm going to go to jail for not being able to pay my bills. It's not that I don't want to pay the bill, it's that I'm financially unable to. I feel like I should have filed bankruptcy years ago, but I kept telling myself, "it'll get better, you'll find a full time job" It has not gotten better, it only gets worse.

I have other bills too, but they aren't as demanding as this one in particular.

Is this why people file bankruptcy?

Answer
This is a very popular reason to file bankruptcy. It allows a fresh start, to help get you back on track in just 90 days.  If you cannot work out something with the lender, and have no other options, then bankruptcy is something to consider. Go meet with a bankruptcy attorney for a free consultation, to see if it will be best for you.