Hello,

I am in a big mess. Over the past several years I have run up around $9,000 in credit card debt and now I have several thousand in medical bills that weren't covered by insurance. My elderly mom had been living with us and was paying enough room and board so that groceries were covered and I was able to keep the credit cards under control. I only receive $600 a month in SSD.

Unfortunately, one of them has a minimum payment of $190 monthly (Walmart). All my minimum payments shot way up the past couple of months when this recession got cranked up in full gear. My interest rates went from 12%-18% all the way up to 24%-29%! This is so unfair because I was paying more than the minimum payment. How do these credit card companies expect people to pay off their debts when they raise the interest so high that they make it impossible? Some of the cards I wasn't even using anymore. My minimum payments are more than my $600 income.

My mom became very ill and now has to live in a nursing home. My financial help is gone. I will probably have no choice but to file bankruptcy, but where I will come up with the attorney fees I have no idea. I certainly don't want my small $600 check garnished.

Can my SSD be garnished? I don't know if I even fit the criteria to repay these debts, since my monthly amount is so low. I have to be able to buy groceries, prescriptions (my medicines add up to close to $100 a month, even with my husband's employer discount card), car gas, etc.

My husband can't help because he is barely working right now. He is having to cash in one of his 401k plans to be able to pay our monthly mortgage. My name isn't on anything because I didn't have a good credit rating when we were married. I had a bankruptcy right before we were married over 21 years ago because I was divorced with 3 kids and had run myself up in debt and medical bills trying to raise them on my own. We live in Virginia so I know I can file without affecting him, it's just not being able to pay the exorbitant attorney's fees, plus the new laws about being able to declare Chapter 7.

Should I just write letters to the credit card companies telling them I no longer can pay them and hope they don't take me to court or is there something legal I can do that won't cost me $1,000-2,000 (which I don't have). How DO people file bankruptcy if they don't have the money in the first place to pay their bills?

Thanks for any advice anyone can offer.

Susan

SSD cannot be garnished except for child support and certain student loans.

You've filed in bankruptcy before so you should sort of know the "rules." It's become more difficult to file but the basic info/requirements have remained the same.

I don't think letters will do any good - they may cause the creditors to sue you sooner which would cut down on the interest you owe but I see no other benefit if you are unable to make "reasonable" payments.