Personal Bankruptcy Looking for answers before bankruptcy.

[Gatuso1971]

I have about $20k in debt (most of them credit cards, a personal loan and a car loan). I am unemployed for 6 months now and I spent every extra money I had. I am not able to pay my debts so I will stop paying them. What will then happend? What will my creditors do? I spoke with a bankruptcy attorney and she did not want to answer the questions I posted here because I did not decide that their law firm will represent me or not in case of bankruptcy. Based on your feedback I might have extra questions about this topic. Thank you!

 

[tpajet]

What will happen is the accounts will go to a collections agency. They will rack up fees to collect. If you then refuse to pay, they will get a judgment against you. Once you do get employed again, you will then have wage garnishments.

The best thing to do is call the credit card companies and have them close the accounts. They will normally then have you pay on the principle in payments, with no interest.

Try all you can to keep the car loan up, since loose the car really hurts finding a job. In the mean time if you have to work at McDonalds, do it. It's not a great job, and not the most money, but with $20K including your car, it will go a long way, and help keep you afloat.