I acquired a debt of 3,000 dollars. I attempted to pay my creditors off but couldn't because of the interest rates the overdraft fees etc. Finally my case was handed down to a lawyer. I failed to contact the lawyer because I didn't have the money they were asking from me, even if they lowered the demand, I live from paycheck to paycheck. Finally my case went to the New York courts and because I have never been to courts was intimidated by the whole process and didn't show up.

The courts have garnished my checking and savings account, I only had 100 dollars and are charging me on both account $5,550. I call my bank they tell me to call the lawyers. My questions are.

1. Can I still negotiate anything with the Lawyers? (what kind of leverage do I have?)
I am 22, Full time student. Don't live with my parents, I live paycheck to paycheck.

2. Should I declare bankruptcy? I do work 2 part time but they're not enough to pay the debt off.

What can I do?

Let me see you don't contact the debt collector, you don't contact the attorney and don't show up in court and wonder why there is a issue.

They have no reason to negotate anything, they can attach your bank accounts, and garnish your wages for years to come, so they can sit back and wait till you grad college, get a high paying job and then take a perecent of that check.

I can't threaten to declare bankruptcy if they don't try to work something out, or is it too late for this?

They have no reason at all to negotiate with you now as they already have a judgment. A lesson in why a person should always respond to legal papers but I'm sure you know that now. Threatening to file bankruptcy will not intimidate them - you file, they can write the money off as a bad debt, you ruin your credit for years. Now that the bankruptcy laws have been tightened it's not the viable option it used to be. Bankruptcy might also jeopardize any student loans you have or are anticipating. (Your bank has nothing to say in this matter; they were obviously served with garnishee papers.)