A bankruptcy I was privy to the details of cost $900 in lawyer fees (paid over 9 months after declaration, so no, you don’t have to pay up front) and really was a great clean slate. He was able to keep his car, too.
However, this person had already done everything else suggested in this thread (getting debt reduced by the credit card companies, consolidating, etc) and was still under amazing amounts of debt.
Thanks for all the great advice so far. I agree that $8,000 is too little to go bankrupt over. Most of my debt is from credit cards, the rest school loans. With the help of my financially fit boyfriend, I have begun the process of contacting my creditors by mail. Talking with them is probably the scariest part. I think part of the reason I avoided contacting them all these years is because I find the creditors so intimidating. Oh well, time for me to face the music.
I’ve also decided against a credit card for now. The reason for wanting one was to make transactions that can’t be made in cash. I have been dealing soley in cash for almost 5 years now, and it can be a major pain in the ass. There are just some things you can’t pay for in cash. I will inquire about getting a debit card down at my bank.
I picked up a few debt management books from the library and I’ll be checking out those debt related messageboards. Please keep the advice coming. I can use all the help I can get.
Another thing to consider is that school loans are not always covered. At least here they aren’t.
We had to pay for our bankruptcy over 9 months. We couldn’t make the payments then at the last month, I got a good job. We were still on the hook for the rest and our period was extended. If I hadn’t got the job it would’ve been dismissed from there.
It’s not the “easiest” way to go, but it exists to help if you need it. For those that need it, it’s a savior.