advice on my situation

[lenny]

Much less complicated than other people here. Single guy, had continuous work for the last 15+ yrs freelance but salary wasn't all that high, so no savings or property, just a car that is paid off. So day to day living expenses aren't that high, but in the last year or two work was sporatic, and then early in the year it basically dried up. So recently depending heavily on CC, now at ~$25k. Lost apartment and now living at a relative's rent free. But have zero income now and (obviously) got behind in the CC payments.

Never been behind in CC before, scared what will happen, gotten a range of advice from others saying, declare BK, don't declare, just ignore creditors, just don't pay the CC at all, etc. Simply don't know where to start.

Any advice?

[lrprn]

From your description of your situation, you don't have any income to garnish and haven't for awhile, and your only asset is a paid-off car.

Unless your paid-off car has a lot of value in today's depressed market, no unsecured creditor or collector is going to see much to get from you if they would decide to try court as a way to force you to pay your debts. You are pretty much judgment-proof because there's nothing to take.

Depending on your car's value, a lender could go to court to put a lien against it so that they would be paid when it's sold - that's about it.

If I were you, I'd set up 2-3 free initial consultations with experienced bankrutpcy lawyers in your area. Tell each of them the same information you shared with us, and ask how much at risk you would be if you just stopped paying on everything. My guess is that for now, you'd be ok to just stop paying and see what happens.

Now of course, if you find employment, then this whole picture changes radically. With a job you would have wages to garnish, so right after you find employment, that would be the best time to file a Ch 7 bankruptcy to wipe out all the unsecured debt.

I'm not a lawyer, so please do set up those initial visits to hear what your best options are.

[lenny]

bargain with cc company

Since a new job is hopefully in the future, do you think it is better to try to bargain with the CC company if they make any offers? I've heard success stories, but also heard about people had trouble with those deals and the cc co. comes after them anyway and makes them wish they did bk instead. What do people do while those co. are calling them all the time?