[studenomics]

I'm an early 20s graduate student in Pennsylvania and I have more debt than I can handle. The majority of my debt ($8,000) is credit card debt. I also have about $500 in medical expenses. It’s very difficult for me to cover all of my monthly expenses (rent, car insurance, electricity, food) + the minimum payments on my credit cards (3 at $120/month).

I’m considering filing for bankruptcy to make things easier. The time it takes to clear from my credit record seems nearly equivalent to how long it would take to pay off the cards, given I can barely make minimum payments.

I don’t have any assets to lose, and I don’t make much money. (When employed, I average $1000/month.) Would it be a good idea to file for bankruptcy in this situation?

Alternatively, should I let some (or all) of the cards go into collections? I've been late on a few payments but never late enough to damage my credit, usually just a few days (all of my accounts are listed in good standing on my credit reports). Still, I'm extremely close to the maximum on all 3 cards and can barely afford to make minimum payments.

Any advice would be appreciated.

[LawResearcherMissy]

If you are not yet behind on your credit cards, bankruptcy might not be the right option for you.

It would be in your best interests to contact a bankruptcy attorney in your area to discuss your situation. First consultation is usually free. If you are unable to find an attorney who offers free consultations - again, most do - contact Legal Aid in your area for a referral.

[jarno]

I'm an early 20s graduate student in Pennsylvania and I have more debt than I can handle. The majority of my debt ($8,000) is credit card debt. I also have about $500 in medical expenses. It’s very difficult for me to cover all of my monthly expenses (rent, car insurance, electricity, food) + the minimum payments on my credit cards (3 at $120/month).

I’m considering filing for bankruptcy to make things easier. The time it takes to clear from my credit record seems nearly equivalent to how long it would take to pay off the cards, given I can barely make minimum payments.

I don’t have any assets to lose, and I don’t make much money. (When employed, I average $1000/month.) Would it be a good idea to file for bankruptcy in this situation?

Alternatively, should I let some (or all) of the cards go into collections? I've been late on a few payments but never late enough to damage my credit, usually just a few days (all of my accounts are listed in good standing on my credit reports). Still, I'm extremely close to the maximum on all 3 cards and can barely afford to make minimum payments.

Any advice would be appreciated.

that's actually not that bad. Out of college I was over 8k in credit card debt. Student loans were in the 18k region. I had 3k in medical bills. 1-2 years after college I paid it all off. Well except the student loans. I guess student loans in grad school can add up. My gf is in her first year in Law school and shes gonna come out with about 130k in student loans by the time she graduates.
Also on a side note. Bunch of my friends were in a whole lot more debt then I was right after college for various reasons and within a year or two we all got back on our feet. Plus you improve your credit score instead of crashing it.

[highfive]

I think bankruptcy is out of the question at this point. If you default and they eventually sue, you will be very stressed, or enjoy it. A default judgement will peg the interest rate to something reasonable and you seem judgement proof.. but thos collection lawyers are a bunch of hungry sharks and your chum... oh well.... it is all very cut and dry, the options.