Q: I can no longer pay my debt. I owe roughly $7000 between 4 credit cards. I don't own any assets. Should I file Chapter 7
I am wondering if I should just sit on the debt or file for bankruptcy? I only own a 12 year old car that's worth not even $2000. There's no property that I own. I make an average of $160 a week working part time and I get a social security check which is a little over $800 a month. I am not sure if anyone will bother to sue me? That's the main thing I am concerned about. Any information you have will be helpful. Thank you!
A:
Greetings!
Under your circumstances, filing for a bankruptcy discharge is a matter of your tolerance to the behavior of collectors. I expect debt collectors are calling you. Since you have no means to pay those debts, you should put in writing to each agency that you refuse to pay the debt. By law, they will no longer be able to contact you except under very limited circumstances. The other risk is being sued. Again, since you appear to have no resources from which you could be compelled to make a payment plan, whether to file bankruptcy is a function of your comfort level with the state court system, and having judgments entered against you.
Filing for a chapter 7 bankruptcy discharge will clean the slate and allow you to start fresh, but since you have no urgent reasons to proceed, depending on your threshold for the above factors, letting it ride will do you no harm.
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