What can I do if I’m in debt? 3 Answers as of August 16, 2010

I have been unemployed for almost a year and a half because of the awful economy. I always had good credit before but now I am drowning in debt which is making me so stressed out and depressed. With my health insurance and all of my credit card debt I really don’t know what I’m going to do. I don’t really have any assets or real estate. What should I do?

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David Nelson
David Nelson | David Nelson
If you have a lot of debt, you might file bankruptcy. If you don't have a lot of debt, you might want to wait. If you have no money, don't pay anyone. You have no real estate so if you also have no income and no money in the bank, then there’s not much a creditor can do to you. They can obtain a judgment and wait for you to get a job. However, by the time you get a job, you'll have probably enough time to save up for a bankruptcy before the creditor figures out where you work and starts garnishing your wages.

Besides, chances are, if you're not working now, what if your debt situation gets worse because of lack of insurance coverages on your health or car or whatever and if something happened and you weren't insured but you had already filed a bankruptcy, you'd be stuck with it. Unable to file for several more years, if that happened, the creditors would be like sharks just nibbling at you for years until you could finally file another bankruptcy.

Better to make sure you've got your head above water before you file a bankruptcy so that things don't get worse after you file. I always tell people, things may be bad now, but if you don't have health insurance of some kind, if you don't have insurance on your car, don't file a bankruptcy because you're setting yourself up for worse things later and without the safety net of bankruptcy protection because you had already played that card.

Good luck to you.
Answer Applies to: California
Replied: 8/5/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
You can file for bankruptcy.
Answer Applies to: California
Replied: 8/5/2010
Fasel, Fasel, & Nefulda, LLP
Fasel, Fasel, & Nefulda, LLP | Thomas Fasel
It sounds like a Chapter 7 Bankruptcy may be your best option. This would help you eliminate your debt and give you fresh start.

To discuss further, please contact me.
Answer Applies to: California
Replied: 8/5/2010
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