I was unemployed most of last year and defaulted on all my credit cards. I was only able to maintain a residence and a car payment. I have about 10K in defaulted credit cards from the past 6-9 months and some other smaller debts. I am thinking about bankruptcy as a way to start over. I'd like to buy a house sometime in the future and I know I can't wait 7 years for all for all of these debts to just fall off. Any suggestions? I have started my own business but I am barely making enough money to cover basic living expenses. I have no money to repay any of these debts, or I would.
10K is, in my opinion, too little debt to declare BK. It doesn't sound like you have any assets or income that would be subject to garnishment. It appears you are judgement proof, i.e. even if a creditor sued you they wouldn't be able to seize any of your assets, as you have none. However, you won't be able to accomplish your goal of buying a house until kill your debt. You'd probably be better off negotiating with the credit card companies and getting a second job. You can only file a BK every 7 years, so most people would advise you to try to find an alternative method of killing your debt, rather than wasting a BK on such little debt.
