Bankruptcy is certainly one option you could reasonably consider. At the same time, you might be 'judgment-proof.' That means that you may not have any assets which your creditors could take from you if they won a judgment. Each state has a list of 'exempt property,' that is, property which your unsecured creditors may not take from you. You'll need to consult a local lawyer to find out if you are judgment proof. Of course, even if you are, you may be the kind of person who is stressed out by collectors' phone calls and letters. And in that case a bankruptcy is an effective tool to shut off that kind of bother. Finding a skilled bankruptcy lawyer is almost always a good idea.
Answered on Jan 29th, 2017 at 1:03 AM