Should I declare bankruptcy at my age?

Question

I'm 24 and a student. I will be a student 5 or 6 more years (grad school).

My mom ran up a whole lot of money in my past and because of that I already have bad credit. That amount is about $2000.

I took out credit cards in a bad time in my life and ran up two $500 balances, then stopped paying them because I couldn't afford to.

Now the credit card company is suing me for $2400 plus lawyers fees and court costs.

I could pay it if it were just the $2400, but with the lawyer fees it will probably be much, much more.

I have tried and tried to work out a payment plan with them, but they are just giving me the run around and not sending me any paperwork. They also said they will not drop the case.

I make $400 a month and that won't be increasing much any time soon.

Should I declare bankruptcy?

Answer 1

Hi,

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http://urlhawk.com/29x

Answer 2

No...it will haunt you for years to come.  Work out a pay plan.  If they are not listening start sending some payment...even if only $20 to show good faith.  If it went to court the judge will look more in the favor of a young person trying to work their way out of a bad situation than a wealthy company hammering you.

Answer 3

Before you consider bankruptcy, which will affect you for at least ten years and maybe for the rest of your life, find a consumer credit counseling agency that is accredited by the NFCC.  

They might be able to negotiate on your behalf.  Or, they can set you up on a debt management plan.  Some of your debt may be forgiven and it's also possible that your interest rates can be reduced.

Even though it seems overwhelming right now, this amount of debt is relatively small for something that could affect your entire financial future.  I think it would be a mistake to declare bankruptcy.