I can certainly understand your concern and your not alone in your financial situation.

I would be very, very careful about getting them all to loan consolidation program. I have never once seen a successful outcome with those. What happened is these companies take your money and allow your credit card debt to sit and wait until they have been fully paid. Then you have to pay additional money to pay off the debt. What happens in the meantime as you will be sued and have judgments entered against you and be completely out of money had been paid this company everything you have. You will then be facing bankruptcy.

I certainly don't mean to intimate there is anything wrong with bankruptcy. The problem is paying out your reserves and being taxed to your limits first. Filing bankruptcy may be very good in your particular situation. It will avoid a judgment on this credit card lawsuit and prevent future lawsuits, as well. The $20,000 you owe will be discharged and he will be out from under the thumb of your creditors and able to move forward into your future.

In the event you choose to hire an attorney to defend the lawsuit, be sure that you have an actual defense. Otherwise, you will pay the attorney and end up paying the creditor, as well. If the creditor obtains a judgment, it will be able to attach your bank accounts and garnish your wages. Again, bankruptcy avoids all of that. Additionally, a bankruptcy attorney will cost you far less than an attorney to defend the credit card action.

Under the circumstances, I think it would be very wise to sit down and have a free consultation with a bankruptcy attorney. A good referral source will be your County Bar Association. If bankruptcy is the right option for you, it is a relatively simple and straightforward process for someone in your circumstances. The hardest part will just be filling out paperwork for your attorney. I have never yet encountered a client who wasn't thrilled with the freedom that bankruptcy offered. No more phone calls, no more threats, no more fear of losing what they have and the ability to look forward to a better future.

Incidentally, the phone calls and harassment stops immediately.

I hope this information helps. If you need additional information or clarification, please let me know and I will be happy to continue to assist you.


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Best of luck!

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