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Old 12-25-2010, 06:57 PM
Li'l Pluck Li'l Pluck is offline
Junior Member
Join Date: Dec 2010
Location: Pennsylvania, USA
Posts: 5
Default Should I file bankruptcy, or not?

Hey, y'all.

I have a serious problem, and I hope that some of you bright minds can help me out.

I'm a 40-year-old single man (with no children) who, as a result of the recession, was laid off two years ago come January. Before I was laid off, I was doing a good job of paying down my debt, usually paying 1.5 or twice the minimum due. After my lay-off, however, I was collecting paltry unemployment, and I was able to make only the minimum payments (paid on time every month). You can just imagine what this, plus accruing interest, did to my balances: I am now about $23K in CC debt.

After exhausting my retirement and savings accounts, and now having reached the end of my unemployment compensation, I am left with no money (in fact, I'm preparing to move in with my mother because I can no longer afford my apartment), and I find myself unable to make even the minimum (or even partial) payments.

The way I see it, I have two courses of action: (a) don't make payments, and let my credit rating suffer, or (b) file for bankruptcy, and let my credit rating suffer. If I had prospects of a steady job in the near future, I'd make payments as soon as I could (even if I had to suffer the indignity of a 30- or 60-day late payment ding), but after two years of searching--even applying for jobs that would've paid me less than half of my former salary, and getting no responses--I don't see myself landing steady, full-time employment any time soon (though yes, I realize that anything can happen).

My preference, of course, is to pay my bills like a responsible adult (I've been good at it for years), but now I don't know what to do. I don't want to file bankruptcy (especially since doing so might cost me a job, as more and more employers are running credit checks on prospective employees, or an apartment), but I'm feeling that I'm at the end of my rope.

What do you think I should do?

I'd appreciate any advice that you have to offer. Thank you very much.
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