Okay, I am in trouble up to my eyeballs. I am self-employed and have been in the same business for 18 years. Unfortunately, due to technology, the work I do is basically being phased out and I have lost a couple of my large accounts in the last year unexpectedly. This cut my income in half. At the same time, I had not one but two engines in a vehicle blow, the first of which was covered under warranty. The second of which was 3000 miles past warranty. My old furnace gave out and my son graduated from a tech school and so Parent Plus loans became due.

I have $33000 in unsecured debt. Little to no equity in my home. All credit cards are in good standing except the two largest. I got behind and with the fees, penalties and raising the interest to nearly 30%, I could not pay the minimum payment. Now, I have tried sending smaller payments and have taken on a second job but too little too late, I think as I received a summons from one of the card companies.

I will file my intent to defend, but I do owe the debt. It is that simple. I wish they would just give me a little time to get on my feet, but apparently not. If they win a judgement against me and freeze my bank account, how will I be able to pay anything else? This is all new stuff to me. Obviously, I did well for myself for several years and I will not deny that I overspent as well, but it seems that I will not be able to get myself out of this in time before this court proceeding goes forward.

My major question is.. . Should I consider going to a debt settlement firm? If so, who? Should I go the credit counseling route? If so, with whom? Now with a judgement looming (as I would never say that this wasn't my debt.. . It is), is bankruptcy my only option left?

Thank you in advance for your time.

You may wish to talk to a bankrutpcy attorney, I am not up on all of the new rules, but my friend had to go though a counseling firm approved by bankrutpcy court proior to filing ( or at least see if it worked)
Also depending on your income there are restrictions as to what you can file 7 or 13. You best bet is to talk to a bankrutpcy attorney who will review all of debts and advise you.

Hello d:

$33 THOUSAND?? Bankruptcy.

excon

I agree with excon and F_Chuck Bankruptcy may be your best answer a good bankruptcy lawyer should be able to advise you as to chapter 7 or 13 I am not familiar with the new BK laws but from what I understand they are more strict then they used to be