Is bankruptcy the best way to settle my debt?

Probably not, since you have been living off of your credit card.

There are a lot of factors that determine whether bankruptcy is the best option for an individual.

Bankruptcy is an excellent means of debt resolution. Individual, qualified counsel in your area can advise whether that generality applies to YOUR debt. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

I am afraid your question is too broad based on the limited information provided. A good rough rule of thumb is bankruptcy may be the best option when your unsecured debt, not counting car loans mortgages or student loans, is more than half your annual income. The day you file bankruptcy, an automatic stay immediately stops all collection activity including garnishments on judgments.

Bankruptcy may be a good solution to get a fresh start and avoid harassment and having to do to court on debt collection. Everyone's situation is unique so if in doubt, seek an experienced bankruptcy lawyer for advice.

First of all, be very careful dealing with debt collection law firm. Most, but unfortunately not all, debt collection attorneys are ethical, but remember their sole purpose is to get as much money from you as they can. It is possible to settle debt, but you need to have a substantial amount of cash. BK may be your best bet.

The worst thing to do is to talk to the people that sued you. Stop! Meet with a lawyer to weigh the pros and cons of bankruptcy.

It sounds like it is your only option but you need to have a consultation with a bankruptcy attorney first to determine your eligibility and if there are any potential problems with your case, particularly since you have been living on credit cards.

It is a good option and sometimes the best if it suits your goals.

Your question is to vague to give a definitive answer to, but I can give you some general guidelines to consider. I would urge you though to contact me or another bankruptcy attorney ASAP to discuss your individual situation in more detail. If you only have credit card debt (a kind of unsecured debt, meaning that the debt is not secured against any kind of collateral), then the big questions to consider are... 1. What is your income? - To do a chapter 7 bankruptcy, you must pass a means test, meaning that either you and your household's total income for the previous six months is less than the median income in your area, or you have special circumstances that would enable you to make more income (these special circumstances are beyond the scope of this quick answer). If you are struggling to pay your credit cards, you probably will pass the means test, but you won't know for sure until you run the numbers. 2. How much debt do you have that you want to discharge in bankruptcy? - If you only have a small amount of debt (say less than a few thousand dollars), it may not be worth your time and money to file bankruptcy. 3. Are you collection-proof? - This question means, do you have any assets that a creditor could take from you if they got a judgment against you? This will vary depending on your state. In Oklahoma, creditors can take up to 25% of your wages, they clean out your bank accounts, they can take away boats and recreational vehicles, they can even take away your car (if the equity exceeds $7,500). However, creditors cannot take social security, so if your only income is SSI and you have few assets, you may very well be collection proof. There are a lot of other factors here, so the only real way to know is to talk to a bankruptcy attorney. Most local attorneys offer free or low-cost initial consultations. It would be worth your time to talk to an attorney I think.

If your debt is too large to pay even with a payment plan you should consult with a bankruptcy attorney. There may be other options such as a credit counseling firm such as MMI, Money Management International.

Bankruptcy is probably your only option. If you can't afford their settlement demands, they can take whatever steps the law allows to collect the debt. This could include wage garnishment, bank account seizure, and seizure of other assets.

Bankruptcy eliminates debt and debt settlement involves offering to pay less than the balance owed in cash(usually your starting offer is 25% cash) You have little time to act. Do not let the creditor obtain a judgement on the lawsuit because that gives them the power to garnish wages & bank accounts, as well as place liens on your real estate. If you do not have the ability to settle for cash, contact a bankruptcy attorney immediately.